Property sellers who hire a listing agent determine a sale price by comparing the price at which other comparable properties sold for. This price usually includes updates to the property as well as
Perils of Overpricing
Dated: December 1 2020
Pricing a home at more than its market value to leave room for “haggling” could lead to getting a lower price.
a. The price should be set at or just below market value to generate the most interest. Real Estate Agents will likely skip over the overpriced home and not even show it to their buyers, thinking the sellers will be unwilling to negotiate given the unrealistic pricing. Buyers are unlikely to consider it for the same reason. It is also possible that an Appraiser will appraise it lower than the unrealistic price.
b. Pricing it at or just below market value could create bidding wars depending on the demand for that particular type of property at that particular time.
c. Pricing the property at your bottom dollar price from the start could do two things: One -generate more buyer interest, and Two – eliminate the need for “haggling”. It is easy to just say “No” if you are at your bottom dollar price already. Determine the lowest price you will accept that will allow you to meet your net requirements and give you the amount of money you need to move on with your life and list it at that price.
I grew up on a farm in Old Monroe, Missouri northwest of St. Louis. My wife and I currently reside outside of Paola, KS, and have been in the area for the past seven years. In my spare time, I am a li....