Why Listing At The Wrong Price Can Destroy Your Chances of Selling
Here's the truth, most seller's (myself included) think that their house is worth a little bit more than it truly is but when it comes to the true value of the home, the truth is that the market dictates the price. It's just an outcome of supply and demand. I always meet with sellers and even I want to squeeze every nickel and dime that I can out of the price - we want to support you as best we can.
But when we talk about the market dictating the price, what do we mean? It means this...a house is worth what a buyer is willing to pay for it and what the seller is willing to take for it. Now here is the check and balance to that...it also has to appraise out most of the time. Unless it's a cash buyer, if someone is getting financing then the house to appraise out in order for the bank to approve the loan for the amount that is being borrowed.
The only exception to that is if the buyer is paying cash and doesn't need to go through a bank to finance their home. But what do buyer's that are paying cash usually want? A discount. So if you are trying to find that needle in a haystack buyer who is paying cash and willing to pay above appraised value, you are going to have a tough time.
If you're in a market where sellers are in the driving seat because there is very little inventory, what you are going to find is that if you put house on the market and you're not getting offers in that first few weeks, buyers are saying no to your price...meaning there is better value somewhere else in the market because when someone looks at your house, they are usually looking at around 4-5 others in the same price range and they will usually picking best value for the dollar amount. So if your house isn't moving quickly and you're not seeing the interest you want, you may want to think about reducing your price.
So here's what we do at Keeling Homes. We never come in and tell you a price as an agent. My job is to educate and guide you on the process and what's happening in the market so that you can make the best decision for you. We will go over comparable homes that have sold to yours....then together with all the information, we come up with a price bracket.
Ultimately price is your decision and what
If you are thinking of selling or want a free home valuation, let me know!