With interests rates nearing a 50 year low and many bank-owned and short lisitngs in our area for sale, it has become a buyer's market. When I meet with clients regarding the sale of their home I am always asked about listing their home for a price above the recent comparables...... And this is what I say.
In real estate terms, market value is the price at which a particular house, in its current condition, should sell within 30 to 90 days. If the price of your home is too high, this could cause several things:
It Limits buyers-Potential buyers may not view your home because it appears to be out of their buying range.
Limits showings-Other salespeople may be more reluctant to view your home.
Used as leverage-Other Realtors may use this home to drive the sale of other homes that are better-priced.
Extended stay on the market-When a home is on the market too long, it may be perceived as defective. Buyers
may wonder, “what’s wrong,” or “why hasn’t this sold?”
Lower price- An overpriced home, still on the market beyond the average selling time, could lead to a lower selling price. To sell it, you will have to reduce the price, sometimes several times. In the end, you’ll probably get less than if it had been properly priced in the first place.
Wasted time and energy- A bank appraisal is most often required to finance a home.