Are you planning to sell your house this spring? Great, did you decide on an asking price? Whatever it is, make sure it reflects the true value of your house. Trust me; over pricing your house will not do you any good even if it may appear to be an attractive option for you. A report has recently published that there already many overpriced properties on the market.
An accurate pricing on a house is determined by a number of factors, and one of these is the time it has stayed on the MLS. Considering the current MLS, there are many properties that have been on the market for more than two months, and yet their prices still have not gone down. Generally, if there is no offer in 30 days, prices should go down, and 60 days should result in another price reduction.
As a seller, you may think that you are pricing your home at its true value, but reality shows otherwise. It is actually the buyer who determines the value of your property when they agree to pay a price for it. As a seller, you can influence what they pay you, but in end, it is their decision to make. So no matter what your asking price is, buyers are not going to pay you more than what they feel it is worth.
So why is over pricing your home not good? Because it means that it will stay too long on the MLS and its value will automatically fall. Buyers lose interest and you will have no more offers. Generally, when this happens it’s because buyers assume there is a problem with your house and do not bother to find out more. What ultimately happens? Either you change your mind about selling or sell at a price that is considerably lower than what you wanted initially. Yes, both of the above mentioned options are not attractive, which is why you should not overprice your home in the first place.
Let’s talk about another issue now. When you overprice a home, lenders find it difficult in providing a loan for it, and so the buyer ultimately changes their mind.
And there is one more problem. Many sellers are not even aware that they have overpriced their home. If you are among these, you should get your house inspected or talk to your real estate agent, and they will help you price it to sell.
So if you are planning to sell, make sure you do not over price your house.
Source: www.washingtonpost.com
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