John's Florida Real Estate Blog

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Do Not Shoot Yourself in the Foot When Pricing Your Home!

Sellers often complain that their homes are not being shown frequently enough. Why are buyers not flocking to see their properties? Almost always the reason is that the price is too high compared to others that are available in the same area.

Any property will sell if it is priced correctly. Even in a buyers market. Take the worst home on the block in a rundown neighborhood, and someone will purchase it, often a "flipper", if the price is attractive. However, even the most beautiful mansion of a movie star will languish on the market if it has a price tag that makes it unattractive to buyers.

Case in point. One of my colleagues has a seller whose home has been shown very little. It is a nice mobile home in good condition in a desirable retiree subdivision that is very popular. It has some age, but has been updated. The listing agent has placed ads, mailed postcards, and created internet publicity. The price of the home is currently $74,900. Not an outrageous price. However, the lack of interested buyers indicates that the market feels that the price is too high compared to similar homes. The owner would be satisfied with a sales price of $69,000. Why then doesn't she lower her asking price to that amount? Because she wants to be able to negotiate. The problem is, if she is not getting any offers, then she has no one to negotiate with! So month after month the home just sits there, while the owner continues to pay park fees, taxes, and interest on her mortgage. If she would just drop her price to the $69,900 and hold firm, she might get some offers to finally consider. Even if she gave the buyers a token concession like $500, she would still net what she basically wanted. However, she is disregarding the advice of her REALTOR, and the home remains unsold.

If your home is not being shown and your agent is publicizing it sufficiently, then the problem is probably the price. More ads, openhouses, websites, and mailings will not help. In the end, it is the price that will determine whether or not a buyer will purchase your home. If you have a price in mind that you will accept, then do not put a price on your home that is way above that amount, at least not beyond a short "testing of the waters" period. If, after a couple of weeks, there is no interest in your offering, you should give serious consideration to setting your price at your "acceptable level". If you do not, you can bet some of your neighbors will, and they will likely grab up one of the few buyers that are out there looking. And if the neighbors do not take your buyers, then the developers will. Today they are often selling homes for less per square foot than the homeowners are.

If you are serious about selling your home, listen to your real estate professional and your inner voice of reason. In the end, both you and your REALTOR will be more satisfied with the outcome!

Feel free to contact me with any questions you have concerning this topic. I will do my best to answer you promptlly. You can call me at 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com

I also invite you to visit my webpage at: www.jelwell.century21bnr.com

John Elwell - REALTOR

CENTURY 21

Bill Nye Realty, Inc.

813-783-4444

Licensed in Florida

 

Comment balloon 0 commentsJohn Elwell • June 13 2007 07:21PM
Do Not Shoot Yourself in the Foot When Pricing Your Home!
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