The Problems of Starting at Too High a Price
and then waiting too long to drop the price
We all want to believe our Sarasota home is worth more than it probably is. It's a natural
reaction. So there's a
tendency to price your home too high, thinking that if it doesn't sell, you can always reduce the price later."
In fact, nothing could be further from the truth.
Even if you manage to get an offer at a "way above market" price, your buyer will likely need a mortgage.
The mortgage lender will require an appraisal. If comparable sales for the last six months and
current market conditions don't support your sale price, the home
won’t appraise and your deal will fall apart. You can try renegotiating the price, but only if your buyer is willing to
listen. At that point, any trust he had in you, and/or his own Realtor® who suggested
that he accept that high price, is gone. Your home will most likely have to go back on the
market.
Once a sales contract falls through and the home goes
back on the market, it is harder to get a good offer. Many Realtors® aren't anxious to show
homes that have been on and off the market. They suspect that you'll be just as unreasonable a
second time around, demanding a price that won't fly. Worse, those Realtors® who
do show your property may bring potential buyers who think that by now you'll be desperate, so
they will make only &qout;low-ball" offers.
When you finally do accept reality and drop your price, your house may have
already become ""stale on the market." Remember that the first
to see your home when its first put on the market will be Realtors® "on tour."
If they think your home is over-priced, they won't show it to prospective buyers.
So, if you don't start at a realistic price, your Sarasota area home could take much much longer to sell.
Listen carefully while your listing agent explains why your home is
worth what his Comparative Market Analysis (CMA) says. Ask questions, if you
wish, to assure yourself your Realtor® used truly comparable properties in arriving at the value
of your home, but pay attention. Competent Realtors know what Sarasota real estate properties are worth on the market right now, not what it may have been worth a year ago or even 6 months ago.
If you overprice your Sarasota home for sale upfront, you may actually end
up with less than you'd have received if you had accepted the professional judgment of your real estate professional.
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