When Sellers wonder why they have not received an offer on their home, they should first look at the asking price – it’s probably too high. But, “buyers can always make an offer, right?” Of course they can, but serious Buyers usually don’t make an offer on a home that’s priced too high, or even waste their time looking at those over-priced homes in the first place.
One reason they simply don’t waste their time bothering to look at over-priced homes has a lot to do with the age we live in- the internet age. Buyers these days are tech savvy. They are online looking at homes long before they ever even call their Lender or Realtor. They know what the average 1500 square foot home in Pooler, GA goes for and therefore they know when a house is priced high, low, or priced just right. When they can narrow down their home search at the click of a button, why would they waste their time seeing homes they know are out of their budget or higher price per square foot than 90-95% of all other homes they’re looking at on-line. If your home is not priced correctly, chances are that the Buyers will not even make an appointment to see it in the first place.
Sellers often think that if Buyers like their home enough, they’ll pay more for it. The truth is that a home is worth a certain price, which may not necessarily be the price the Sellers want, but that the market sets that price, regardless of what the Seller wants. Buyers typically know the market value better than Sellers, because of the time they spend looking for homes on-line or looking at homes with their Realtor. While Sellers may look at a few houses before putting theirs on the market, buyers look at dozens of homes. By the time they decide to make an offer on one, they have a good idea about housing prices. It’s almost impossible to convince today’s cost-conscious, consumer-savvy buyers to pay more than the fair market price for a home.
MORE HINTS: When Sellers discover their home is priced too high, they should reduce the price immediately. A home is most marketable when it is new on the market. If it doesn’t sell within the first month or so, buyers lose interest in it or forget about it all together because they have likely already ruled it out. Sellers may be reluctant to drop their asking price. But, keeping it on the market at an unrealistic price can result in a lower overall selling price when it ultimately does sell. If Sellers lower the price when the listing is relatively new, they have a good chance to keep the marketing momentum going, but ultimately listing your home at the price that your Realtor has recommended is always best. Your Realtor is the professional. He or she has gone to school, spent years studying the local market and knows what Buyers are looking for more than you do so please….trust his/her judgment and do what she says. Remember, he/she is commission based and therefore makes more money when your home sells for more. Trust me, if he or she felt like you could get more money for your home, they would tell you.
Speaking of Realtors:
Not only do Buyers not like to make offers on an over-priced listing, but Realtors also don’t like to show them. Put yourself in the agent’s shoes. If you’re working with well-qualified, motivated Buyers who only want to see well-priced homes that suit their needs, why would you risk losing credibility by taking them to see an over-priced property?
If you feel like your home may be overpriced, call us to find out what you need to do to get back on track. If you are thinking about listing your home, call a professional with wonderful credentials that you know will look out for your best interests, and then listen to their professional opinions when deciding on a list price for your home.
**If you’re looking to Sell a home in the greater Savannah, GA area, call Trisha Cook. Trisha has been in the business for nearly 10 years and is in the top 1% of all Realtors, nationwide.