Part 2 of a 3-part Series entitled Six Pricing Myths Sellers Must Ditch Now
3. If we price the home right at market value, we will be leaving money on the table. Oh no!
This hasn’t been our experience! Sellers react negatively to homes that are not priced in line with the market. They either don’t tour the home; or when they do tour the home, they go out of their way to find, point out and put a price on every flaw: “They should deduct $2500 for that ugly carpet”
What really happens, especially in a low inventory market like Evansville, is that buyers are eager to see reasonably priced homes. So much so, that multiple offer situations are not unusual. Multiple offers often result in above-market sale prices as the result of the bidding war that develops between hungry buyers! Buyers of reasonably priced homes are willing to overlook the flaws that doom overpriced homes as buyers feel the pressure to make an offer or lose the house.
Take Away: You won’t sell a house no one looks at
4. If I don’t get the price I want this spring, I’ll relist. No worries.
The price of homes that sit on the market is like your favorite pair of jeans—they just get softer with time. The longer a house is for sale, the more likely a buyer will think something must be wrong with it and chose to not even look at it. Occasionally we even get the intrepid buyer who thinks: Awesome—something must be wrong with it….I’ll get it way cheap! (And that’s just what the frustrated seller starts to think too: This offer is way too cheap!) Your local multi-listing services show DOM (Days on Market) as do Zillow, Realtor.com and others. It’s hard to hide this info from buyers and realtors.
Sellers also have to look at the costs of several more months of paying a mortgage, maintaining the home in tip top shape, and perhaps repairing the furnace when fall rolls around and the motor is burned out!
And when fall rolls around, your tired looking house will be out there competing with all of the gorgeous, newly listed homes that hit the market right after the kids went back to school. Your competition has increased because you waited to right-price your house, making you worse off than you were last spring. Sigh.
Take Away: Home prices age like blue jeans….the older they are, the softer they get!