Overpricing wastes the optimum moment of buyer and broker attention : when it first comes on the market. This moment cannot be recaptured.
Overpriced homes kill any sense of buyer urgency and take much longer to sell, which then significantly reduces value in buyers’ minds: “There must be something wrong with it if it hasn’t sold by now.” It almost always eliminates the possibility of competitive bidding.
Overpricing helps sell competitive properties , since they stand out as good values in comparison.
If a listing has inadvertently been overpriced (or market conditions suddenly cool), the sooner it is recognized as such and the price adjusted, the smaller the negative impact. Price reductions must be big enough to regain the attention of buyers and their agents – typically, at least 5%. In order to win the listing, some agents suggest a list price considerably higher than what market conditions and comparable sales justify — because they believe this is what the seller wants to hear. This is called “buying the listing” and is a violation of the fiduciary duty of honesty that an agent owes their client.
Price it right to begin with.
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• Prepare the home to show in its best possible light. • Implement the most comprehensive marketing plan possible. • Hire an agent who knows how to negotiate effectively on your behalf, and manage the disclosure and due diligence processes.
In the Bay Area, the difference can add up to tens or even hundreds of thousands of dollars.
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