Every home seller in London Ontario and area wants to realize as much money as possible when selling their home. The natural inclination is to price the home a little higher, thinking they can always come down in the future.
But listing any house or condo in London Ontario with a price that is too high more often than not, nets the seller LESS money than an original price at market value.
Why is this?
Buyers know prices, they may have already been in 6-10 homes, they can compare and in the long run, the buyer will decide if a home is priced right! Not you, your Realtor, your neighbour or your hair dresser or Uncle Bob who knows everything!
If there are no offers on a listing after 30 days, what do you think the reason was?
Most price their home high, thinking They can always come down. Problem is, the Realtor and the buyer community do not look at it that way. They see it as an overpriced property. After a few weeks or even months go by, a few open houses, signs, agent tours and not a nibble.
Finally, in order to attract attention, the price gets reduced more than ever than they thought they would, and they are now netting much less than if they had priced it correctly in the beginning.
And think about this: The money lost is not just the lower sales price, but all the extra interest on the mortgage…all the extra property taxes and other carrying costs that accrue while the home is waiting to sell.
I’ve seen it happen time and again!
I call it chasing the market or to be subtle, like falling off a cliff in the night, you know you are going to hit bottom but you don’t know when!
Real Estate Fact: The Seller Is Solely Responsible For How Much, and How Quickly Their Home Sells!
Overpricing almost always increases time to sell, and adds to the carrying costs.
I wrote a seller's guide that sheds some light on maximizing the sale price:
- How to set the asking price to maximize exposure and a profitable sale.
- How do you really define and compare market value between homes?
- How the total market performance may affect your home sale – positive or negative.
- How to handle buyers during any showing to help yield the highest price.
Once you can grasp these important issues, you’ll know how to price and sell your home for the fastest, most profitable sale.
Also, with this information, you’ll never pay too much for any home you buy for the rest of your life.