At first glance, it may seem like a good idea to price your home as high as you possibly can. After all, there are always rounds of negotiation in real estate, and buyers can always negotiate and make a counter offer... right?
Sadly, that’s a recipe for failure in real estate.
Buyers (and especially buyer agents) are more informed than ever, and have all the tools they need to know how much a home is worth, and what a realistic and market-data-backed final price tag should look like.
If a home is obviously overpriced, buyers won’t have the patience or interest to spend round after round of counter offers., especially if there are alternatives in the market.
In fact, if the price for the home is too high, your home might not even show up in important areas of a MLS or property search sites. For example, if you price a $280,000 home at $350,000, it won’t show up on a property search for homes up to $300,000.
Also, if your home remains unsold in the market for too long, it may start raising questions about whether there’s something wrong with the home.
And opportunistic buyer agents and investors will know that the longer a listing remains in the market, the more it will cost you, and they’ll start making ridiculously low offers. At the end, you could end up with a final price that’s much lower than you could have hoped for.
By far the most effective way to attract buyers is to price your home correctly from day one.
Trust your agent’s advice, and make sure you verify the data that they use to price your property. By pricing your property correctly from day one, you’ll attract more qualified buyers, and your home won’t get stuck in the market unsold.