Pricing your property.
Pricing your property correctly is critical in getting the most amount of money in the least amount of time. When setting the price of your home, many sellers are tempted to tack on a few percentage points to “leave room to negotiate”.
Overpricing a home can have many ramifications for a seller. It can limit the number of potential buyers who can afford your home, reduce showings and create an impression that the Seller is not serious about selling.
In 2010, home sellers slashed more than $24 billion from listings advertised on Trulia.com. Most Sellers will reduce their list price after 79 days on the market, choosing to cut their original list price by 8%. Following a first reduction, 35% of these Sellers will make a second reduction.
Most homebuyers look at 10-15 homes before making a buying decision. Setting a competitive price relative to the competition is an essential component to a successful marketing strategy. Don’t over-inflate the value of your property and always take advantage of the first day of the listing period.
There are 7 reasons not to overprice your home.
- The home must appraise for the purchase price, if it does not, the sale could likely fail.
- Today’s sophisticated home buyers are well educated about the real estate market. If your home is over-priced the buyers will not bother looking at the home.
- When a new listing comes on the market, agents quickly check to see if the property is a good fit for their clients. If your home is labeled as being over-priced, reigniting interest may take drastic measures.
- Overpricing helps your competition. You make their lower prices seem like bargains. Nothing is worse than watching your neighbors put up sold signs.
- The longer your home sits on the market, the more likely it is to become stale.
- Buyers who do view your home may negotiate harder because the home has been on the market for a long period of time.
- You will lose a percentage of the buyers who are outside of your price point. These buyers are looking in the price that your home will eventually sell for but don’t see the home because the price is above their pre-set budget
ERA Mortgage is dedicated to meeting your unique home financing needs.
ERA Mortgage complements ERA to bring you a full-service solution. Customers across the country rely on ERA real estate professionals to guide them through the home buying process. Every day, ERA Mortgage works to provide home financing solutions for these customers.
What can ERA Mortgage do for you?
With decades of mortgage experience, we’re so confident you’ll receive superior service that we offer these industry-leading guarantees:
- We’ll give you a same-day loan decision or pay you $250
- We’ll meet your requested closing date or we will reduce your interest rate by 1/8 of one percent for the life of the loan
With a pre-approval mortgage decision from ERA Mortgage, you can shop with confidence for your dream home knowing just how much home you can afford.
Call (888) 307-8006 for a guaranteed same-day loan decision.