For years, I’ve been trying to convince sellers, in order to get your home sold fast, be aggressive. The argument I hear is, we want to leave room for negotiation.
That’s not the best approach, I have story after story I can share that illustrates what happens when you overprice your home and how great it can be if you price it close to the lower end of the comparable sales. Remember, as a seller, you don’t have to accept any offer. Not one. If you get 50 offers and none of them suit you, you are free to reject them all. Sure, people will always try to negotiate, that’s what buyers do, that’s what you do, isn’t it.
A recent example is a home I marketed in Downtown Annapolis for a lender who owned the property through foreclosure action. They were wise enough to see the value in the property, price it correctly and in just 6 days we had 5 offers, several of which were over the asking price. In the end did the bank get a fair price. Yes they did. Why does this approach work? Buyer’s are looking for deals, so a home pops up on the market for sale and it’s priced really good. The phone starts ringing, everyone wants to know, “Do you have any offers?” Then they start coming in. Some are still below the asking price, some at the asking price and then there are those who see the value and step up to buy it. It happens in this market and all markets and in most cases, I see these properties selling above the asking price.
Whats the risk? There is very little downside risk to the seller. In a few cases, where we price (what we think is) aggressive, we are sometimes wrong. What the buyers are telling us in these cases is, we don’t see the value you see. In those cases, the buyer’s are most likely right. There is something about the property that prevents them from buying. It could be location or condition in relation to the asking price.
At the other end of the spectrum, I see overpriced homes that sit and sit and sit. Boy do they sit. I have a listing now that has been on the market with 5 different agents over a 5 or 6 year period. When I met the sellers, I suggesed an asking price for the home. I also told them, if they wanted to price it above a certain price, I would not want to spend the time marketing it. They priced the home at the high end of where I was willing to give it a try, with the understanding that, if we had little activity in the first three weeks we would lower the price. Well, Four weeks have passed and they think it’s premature to lower the price. It’s not! The only way this property will sell is if the sellers get more aggressive. It’s a simple choice, sell it, or don’t.
I’m not alone in these thoughts, A recent article in the Sun Sentinel shares some agent’s views on this very topic.
You cannot sell your home to cheap! You can’t. You see, as the seller, you are the boss in the transaction. What you can do is listen to reason, review the comparable data and get it done. Take a look at my video regarding How to sell your home fast for more. It discusses the need for preparation and proper pricing in order to sell fast for more in any market.