Set Your Price As High As Possible?
Most homeowners want to set the asking price of their homes as high as possible. This is understandable. You want to make as much money as you can from the sale.
But there is a big problem with this strategy. Overpriced houses do not sell.
The vast majority of buyers avoid them. Why look at the highest priced home in the area when there are 7 similar homes more reasonably priced?
Even if you convince someone to pay above market value for your home, the bank will still send an appraiser. They may refuse to give the potential buyer a bond for the requested amount.
Overpriced homes could sit on the market for a very long time. Eventually the owners give in and lower the price. But now buyers have seen the house sitting on the market for months, and they see the price dropping. They assume something is wrong with it. So it’s better to price it competitively from the start.
Don’t fall for the typical house pricing myths. When you believe one of these fallacies, you end up with a home sale failure.
Here are a few common delusions:
- A higher asking price brings a higher sale price
- Pricing a home higher leaves more room for negotiation
- I got an offer too soon so I must have priced my home too low
- I think I would have received a better offer if my home had been on the market longer
None of these are factual.
