Selling your home can be an emotionally taxing process. In order to get things done properly and efficiently, it is important to stop looking at things through an emotional lens, and instead look at things through a business lens. Hiring a real estate agent who is well versed in the current buying and selling market is best, as they can help objectively price your home. An agent with lots of experience and lots of business is key, so that he or she will make decision that are best for you, not solely to benefit themselves. An agent will help you avoid overpricing your home, while taking into consideration comparable homes, and your households and neighbourhood amenities.
Compare Your Listing With Others
Homes that have been properly priced often go on the market, and within a few hours have interested buyers making offers. However, homes that are overpriced can sit on the market for weeks, months, or even years without a single offer. When listing your home, it is wise to take into consideration the prices of similarly sized houses in close proximity to yours. Your price should be comparable to others in your neighbourhood, with differences depending on individual upgrades. For instance, if one house on your street is $500,000 and your house, with the same features, is priced at $585,000, which house will have more interested buyers? Not yours.
Spoiled Houses Don’t Sell
As time goes on and a house sits on the market unsold, buyers tend to look at it as spoiled. They assume it is overpriced, or something must be wrong with it if it has gone so long without selling.The only offers it would get would be much lower than the asking price, which can be very discouraging to the seller.Also,over time the market could dip, and houses could be priced lower than the average when the house initially went up for sale. Sellers whose houses have been on the market for a long time are considered easy, because they are more willing to accept whatever offer they can get. Offers lower than the house is actually worth might be the only option. As a house sits on the market, the homeowners lose even more money, spent on continuous mortgage payments.All this couldbe avoided with proper pricing in the first place.
Appraisal Leads to a Denied Loan
If someone does buy your home at it’s overpriced value, it will then need to be appraised in order for the buyer to be granted the loan money. If this appraisal determines your home is worth much less than the listing price, there is a chance that the bank might not go through with the loan unless the price is reduced to the appraisal value. Alternatively, the bank might make the buyer come up with a larger down payment to compensate for the high price. There is the risk, also, that the buyer will walk away upon learning the house is overpriced, and you will lose the sale completely.
Avoid Overpricing!
When deciding on the price of your home, avoid overpricing to ensure a smooth sale. Compare your price to that of similar houses for sale, and use that as a gauge when listing your own. Properly priced homes sell much faster than overpriced, and can keep your home from spoiling on the market. Overpricing can lead to problems down the road with the buyer’s appraisal and mortgage loans. Listing your home at a reasonable price will allow for a faster sale, and an easier transition into your new home.
If you would like to know your house price or for any other question please contact me today! (647) 834-2292 - Marina.
