Sunday, 22 October 2017

There's no such thing as underpricing when selling.

Written by Andrew Posted On Thursday, 20 April 2017 02:11

When listing a home for sale, the worst thing a seller can do is overprice it. When considering a price point, many sellers tell their real estate broker or agent that their home is much nicer than the home that recently sold down the street. This is how they justify the price they want. Since selling a home isn't something people do often, their first thought is that prospective buyers will want to haggle so they price with the thought of leaving room for negotiations.  In theory, this sounds like a sensible approach, but it's really not.  The goal of marketing real estate is to get as many people interested as possible but increasing the price will usually have an adverse effect. Sellers often feel someone is going to 'steal' their home but the truth is that nobody steals a home especially in low inventory markets such as Massachusetts. Although demand will always exceed the supply of housing in states like Massachusetts, it doesn't mean sellers aren't subject to the pitfalls of overpricing.  As a real estate broker who has listed and sold countless properties through our flat fee MLS  and full service programs, I have learned that two things are certain when selling real estate. Nobody "steals" a home and value is always determined by the market, not the seller.  A seller can decide on the asking price, but the market will ultimately decide what the home's fair market value is.  With this being said, if you overprice your home, more often than not, you will need to lower the price. If you price your home aggressively, buyers will take notice and there's a very good chance you will see multiple offers. There are many things to worry about when selling in a hot market, but the one thing you should never worry about is underpricing.  This will never happen. Why? Because market forces rarely let a home sell for less than what its worth. Trust me, we list and sell a lot of homes. The data is telling, the trends are obvious and the market doesn't lie. 

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