They’ve seen every valuation available for your house and know what the algorithms think it’s worth, and they will instantly recognize your attempt to inflate the price.
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There is more information available to buyers today online than ever before in human history, and considering the importance and financial impact of a home purchase, you can rest assured that those buyers are taking full advantage of all that available information. But if that perfect buyer’s budget doesn’t stretch to include your home, there’s every chance they might miss your “price drop” announcement in a few weeks … or that they might have settled for a different house by then. When you only have one unit to sell, you might think that the best approach is to price it as high as you can and hope that the buyer who’s willing to pay the most for your home is in the pool of buyers who can afford your ideal price. This is why companies do extensive research on the demand for a product and rarely decide to price what they sell at the very top of the range they determine is possible - at a certain point, it’s better to sell more units at a lower price than fewer at a higher price because there will be more consistent demand. One basic law of economics is that more buyers will be able to afford your product if it’s priced lower than higher. And if any variable doesn’t align with your ideal, if the market is slightly less hot or if your home has one fewer bedroom or the kitchen is a bit outdated, then you’re only going to be negotiating down or dropping the price. If you think your home is the very best in the neighborhood, and you price it at the very top of the range of homes in your area - even if you’re correct, you’re not giving buyers any room to negotiate except for down. It’s not ‘room to negotiate’ if you can only move down When is your home likely to get the most attention from qualified, ready buyers who are eager to see it? You may see small spikes of attention when you drop the price, but your home is going to get the most eyeballs on it when it first hits the market, and if you’re testing the market with a price that you know probably isn’t realistic … well, you’re blowing a huge opportunity to get your house sold quickly for a decent price on the very slim chance that a rare buyer is going to fall in love with your house and pay your dream price.
Now think about this pattern from the perspective of the listing itself. If you don’t find your new home in that first batch of listings, though, then you play the waiting game, stalking the MLS for every new listing that could be a match and racing to view it as soon as it hits the market. When you first get pre-approved and start seriously looking at houses to buy, you look at everything available that meets your general specifications and price range. Think for a moment about what it’s like to be a buyer in most real estate markets in the country. You’re squandering the ‘just listed’ window of opportunity This is an incredibly risky strategy that might work for some one-of-a-kind items like antiques or rare animals, but if you try it with home sales, it’s most likely to blow up in your face. In practice, this usually means that sellers get a sense of how much their home might be worth by talking to some experts, then deliberately overprice their home when they list it on the market … just to see if anybody will bite. For this reason, when many sellers are preparing to sell their house, they want to “test the market” - throwing a home price at the wall to see if it sticks, essentially.
Selling a house isn’t exactly like selling any other piece of property there’s no reference book on how much a home should cost because home value depends on so many different factors that vary widely from residence to residence.