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Why Proper Pricing is
Critical
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A property generates the most
excitement and interest amongst brokers and buyers when it first goes
on the market. This is
the time, the first few weeks, when the number of showings is the
greatest - if it is priced correctly at fair market value. That's
why starting too high and dropping the price later is not the best way
to start out marketing your house. Your
house will miss that all important momentum building excitement and
most likely will fail to generate activity. You
may even have to drop your price below market value just to compete
with the newer competitively priced listings. Pricing
correctly in the beginning is critical if you are going to get the
highest possible price for your home! |
Overpriced Homes Take Longer to Sell…
The higher above market value you are priced - the longer it will take to
sell. The mindset of "We
can always start out high and see what happens - then lower the price if we
have to" is not a good idea. With
several downward price adjustments, it is likely that your home will gain
the reputation of a problem property. Listening to what the market says and pricing your home
correctly at the start will save you frustration and disappointment.
You
Will Lose Potential Buyers…
The
number of buyers will dwindle because of the higher price you have set on
your home. Nowadays with information so readily available, the home buyer is
far more knowledgeable about fair market value. Thanks to the internet and the information age most people now
know what is a fair price. For
this reason alone, being extra sharp on pricing is a must - so you can get
the right amount of activity on your home - so it will sell for the highest
possible price, shortest time and least amount of inconvenience.
Your Buyers
May Not Get the Financing…
Even if you are lucky enough to find a buyer who is willing to pay more than
fair market value, it may be impossible for that buyer to get the needed
financing. Lenders look at fair
market value, not the sales price, to determine if they are going to make
the loan on the purchase. The
lenders depend on independent appraisers to make sure that the sales price
is at fair market value. When a
property fails to appraise at fair market value, either the buyers must make
up the difference in cash, or you may have to re-negotiate the sales price,
or the transaction will fall apart. Therefore,
even if you want more than fair market value the lenders will not give it to
you. Pricing your home at fair
market value not only attracts more buyers but will allow the sale to
happen.
©Copyright 2010 Brenda Jones Real Estate
Licensed in the State of Vermont |
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