Are you in danger of pricing your property out of the market?
When selling a property there are many things to consider.
That is why it is crucial that you choose the “right salesperson” for the job in the first instance.
If the salesperson is not truthful in telling you where they see your property fitting “price wise” in comparison to others on the market at that point in time (no matter if this is not what you want to hear), and they let you dictate the price to pitch it at, much higher than fair market value, you could then be in danger of overpricing your property for sale.
The flow on consequences of this act of over-pricing can be a downhill spiral for your property within the property sales arena.
Points to remember –
- An overpriced property discourages prospective buyers from making offers since the difference between the asking price and the market price become substantial.
- It might also be in a price range on the real estate digital platforms, and other print media, that potentially make it look overpriced.
- For instance, other properties might offer more, or look much better than your property, so you will only help others sell their properties when buyers compare them to yours.
- Salespeople lose interest in overpriced properties and will concentrate on the ones that are priced correctly and fairly in the current market.
- There will be a decline in viewings as salespeople will avoid showing the property in order not to lose credibility with their buyers.
- Or they might show it to make a buyer see what a bargain they are getting on another property that is priced correctly.
- Again, you do not want your property to be the one that is showing up on the web, which inadvertently promotes another property which is correctly priced.
- Potential buyers could get turned off by the price and fail to make any further enquiries.
- Purchasers who require financing are governed by the financial institutions percentage value calculation for loans; -for example, their bank might only loan 80 % of the registered valuation and the registered valuation will be based on market related data supplied by a registered valuer who is appointed by the bank . No doubt, the Valuer will find a lower value, so the finance will fail, and the sale will crash if dependant on financing.
- An overpriced property will also waste advertising dollars spent, as it will not get the normal advertising response and often an extended campaign will be required, therefore more money will need to be spent on advertising.
- Eventually market interest will decline on an overpriced property and when this happens the seller becomes desperate and will often sell at any price.
- In the meantime the seller’s maintenance, holding, and advertising costs have increased, and they will get much less in the hand than they would have if they had priced correctly in the first place.
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