When Your Asking Price is too High, Beware!

What Happens Behind the Scenes?

If you start out with too high an asking price for your property / home, you may have just added to your stress level — and selling a home is stressful enough. There will be a lot of “behind the scenes” action taking place that you don’t know about.

Contrary to popular opinion, the listing agent does not usually attempt to sell your property / home directly to a home buyer. That would be inefficient.

Listing agents market and promote your home to the HHMLS local agents who do work with home buyers, dramatically increasing your personal sales force. During the first couple of weeks your home should be a flurry of activity with buyer’s agents coming to preview your home so they can sell it to their clients.

If the property / home asking price is comparatively priced – market value – condition.

If you have overpriced, fewer professional agents will preview your home. After all, they are Realtors, and it is their job to know local market condition and current home sales. If your house is dramatically above market, agents may ask themselves, why waste time? Their business time is better spent previewing homes that are priced realistically.

When Your Asking Price is too High, Beware!

Dropping Your Price…Too Late

If you start out with a high sales price, then drop it later — your house could be considered “old news.” You may never be able to recapture that initial flurry of activity, what you would have had with a realistic price. Your house could now take longer to sell. Buyers’ are well informed with the information available on the internet.

Even if you do successfully capturing and pend an agreement at an above market price to an uninformed buyer, your buyer may need or want a mortgage. The mortgage lender usually requires an professional state licensed appraisal. If comparable sales for the last six months and objective current market conditions do not support the contract agreed sale price, the house may not appraise. Your agreement falls apart. Of course, you can always attempt to renegotiate the price, but only if the buyer is willing to listen.

Your property / home could go “back on the market.”

Once your property / home has pended and then fallen out of escrow or sits on the market awhile, potential buyers may contemplate distress or an anxious situation, so they may consider making lower offers. By overpricing your home in the beginning, you could actually end up settling for a less than desirable sale price.

When Your Selling Price is too High, Beware!

Realtors Talk to Each Other

If you start out with a listing price that is too high, there is a high likelihood you interviewed other agents.  They didn’t get the listing, of course; by someone telling you what you wanted to hear.

If your listing agent routinely engages in listing high, the agent may be known by other agents. Being human, Realtors talk to each other. If they don’t respect a listing agent, not as many of them will be showing your property / home.

In short, you may have ended up with an agent who was good at selling you, but not respected at selling your property / home . And you’ve agreed pay them a commission fee.

It is human nature for you to want the highest value for your property / home. However, when you choose the agent who promises what you want to hear, it often leads to stress and frustration. Most of the time, it will take you longer to sell your home. Possibly, you will end up selling at a lower price instead.

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