I understand your disappointment Mr. Jones. Your house did sell for less than you initially set out for. It actually sold for exactly market value - sadly, that was my recommended list price 4 mortgage payments ago.
I completely get it. Overpricing seems like you are building in room for negotiations. Inflating the price may seem like the right thing to do, but watch out - you may just scare off the right buyer. I understand how amazing your home renovations or new landscaping might be, and that you don't want to leave money on the table. That's exactly why I encourage sellers to list their home as the market dictates it's worth. The comps don't lie.
Zillow's research finds that homes lingering on the market generally sell for notably less than their list price: five percent less after 60 days.
Considering the above mentioned 5% loss and also factoring in the loss of two more mortgage payments, that's what I call money left on the table.
You may wonder, "What's the big deal? I'll drop the price if it hasn't sold in 30 days." Actually, your home gets the most interest and showings the first few days on the MLS. So it really is a big deal - it's a missed opportunity for making a good first impression. So be bold, and price your real estate accurately right out of the gates. Buyers have a set price range, and it's in your best interest to have that pool of interested homebuyers be responsive to your price and make an offer.
Trying to sell real estate at an inflated price is like trying to grab a fist-full of water. Buyers will slip right through your fingertips when they do the math.
Then, as days on the market increases, the interest in your home will naturally decrease, as newer homes on the market filter in.
I spend a lot of time monitoring the Truckee real estate market. I know, and I see time and time again that home sellers need to do only two things: list at market value and have your home conditioned to sell. It's a pretty simple recipe for home selling success.
Admittedly, after price reductions, your overpriced home should eventually hit it's market value and get an offer. Here's where the real penalty falls. Your buyer will low-ball you because your home has stagnated. A stale home gets about as much interest as festering leftovers in the fridge - nobody wants it. You're at a place of disadvantage when it's time to negotiate a stale listing.
The listing game Plan:
If you're listing your home, do it with boldness and finesse. Do it with faith in the comps and certainty in the market value. I urge you to remember that buyers will take you seriously if you appear to be serious about selling. So accept your real estate agent's advice and remember you're on the same team. If you cannot trust their home valuation then you should get another opinion.
So how to get started? Here are a couple great articles about getting your home ready to sell, reading them would be a nice first step towards selling your home. see that article here.
I also really liked this video I saw on youtube which is appropriately titled, Overpriced Homes Sell Other People's Homes created by Cynthia at Trusted Estate Realty. Check it out.
Thank you for reading, and please allow me to help you out when it's your time to buy or sell in Truckee.