Many homeowners are inclined to start with a high asking price when selling their homes. They reason that they can always come down when no one responds. This is an erroneous and potentially dangerous assumption. Everyone knows that the housing market is tough right now. A lot of inventory, a lot of competition and not too many buyers. This means that your house is competing with other homes. If they're priced right and your house is priced right, they will win. Most buyers talk to a buyers agent. The buyers agent knows the market cold. He knows the overpriced listings, the underpriced listings and the homes that are priced just right. His time is valuable, so you can be sure he won't waste his time looking at the overpriced listings in the market. Your house will be passed over. Maybe you're mare than happy to negotiate. A lot of homeowners are. You're hoping for an offer, so you can take a big amount off the price and still keep enough to get equity out of your house. But you will be hard pressed to get an offer. It will even be tough to get showings in this market. If you don't have showings and you don't have an offer, you can't negotiate. Let's say that you've started with an asking price that is too high. Now, after 3 months of little activity, you've decided to come down. Buyers know notice your home, but they will wonder what is wrong with your house. Why has it been on the market for a couple of months at that price? If the buyer's do know that you just lowered the price, there's a big chance you are going to get low ball offers. They reason that you're facing a deadline and that they may buy your home on the cheap because of your situation. This is why you should always start with a realistic asking price. Don't go the overpriced route, because you will end up shooting yourself in the foot.
Please Rate this Article 5 out of 54 out of 53 out of 52 out of 51 out of 5
Not yet Rated
