One of my jobs as your listing agent is to assist you in pricing your home correctly in order to attract the most interest among potential buyers and area brokers.  It is important that you consider the problems that can arise if you overprice any home, whether it be a Piedmont home, a Berkeley home, or an Oakland home.

Here are the basic problems to consider before deciding on your final price. Should you overprice:

a. There Will Be No Showings:  With the Internet available to everyone, today's buyers are very sophisticated as to comparable pricing.  In fact, many real estate web sites will furnish them with comps at the click of a mouse.  They, and their broker, will know very quickly when a house is overpriced.  They will not want to see or consider it when there are other, more reasonable homes on the market.

b.Time and Money Loss:  After your home has been on the market for months, the longer it becomes stigmatized.  There is a tendency among buyers to wonder why it has been sitting for so long.  What is wrong with it?  Are the owners totally unreasonable?  Are there problems with funding?  It is important to avoid developing a negative image about your home. Additionally, you are losing money every month it sits unsold.  Perhaps you have now have two mortgages to pay, or need to move out of town. 

c. Weakened Negotiation Position: When you finally decide that you should lower the price, you may find that there is a limited market of people interested, and those may want to negotiate quite hard, because they see that you need to move your home, and soon. 

d. Ultimate Appraisal Problems: Even if you stay to your high price, and you find a buyer willing to accommodate you, if your home does not appraise correctly because it is well over the other comparable homes sold in your area, the financing will be a challenge.   Lenders base their funding on a realistic appraisal price. 

It is important to take the time to price accurately, correctly and realistically at the outset.  It makes good sense financially. 

Posted by Bruce Wagg on


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