How Does Price Affect Buyers?
- Well-priced properties generate immediate enthusiasm among buyers and agents love showing competitively priced homes.
- Homes priced above market value have less buyer interest.
- Bargaining room is not as powerful in negotiating as bringing in a larger number of truly motivated buyers.
- When you price your home below market value, you increase the pool of interested buyers.
Properties will generally sell for less than market value if they linger on the market. Buyers who see properties that do not sell quickly will assume the property is either overpriced or has problems.
DANGER...Watch Out When Overpricing
Unfortunate results are often followed when a home is priced too high for the market:
- Best offers are usually made within the first weeks of the initial listing, overpricing a home will cause it to quickly lose momentum.
- The home will attract "lookers" rather than serious home buyers. Showings will be few and far between.
- Comparable properties will take priority with buyers ~ they will look more attractive & sell quicker! Buyers will think the seller is not motivated.
- Home appraisal may not come in at higher price and leave the buyer unable to finance the home