When it comes to listing price, one of the most common myths amongst home sellers is that if they price their home higher than what it is actually worth, they will be more assured of actually achieving their target price during the negotiating process. For instance, Seller Smith wants to list his home at $285,000, in hopes of negotiating a realistic price of $265,000.
Unfortunately, the negotiating process today very rarely if ever works this way. I’m not really certain that it ever did in all honesty. The reality for Sellers is that Buyers set the price of a home in todays market; a home is really only worth what any Buyer is willing to pay for it, in fair and reasonable circumstances. Todays Buyers are more apt to wait until a Seller lowers their price before they will make a low-ball offer, or, they will move on to the next properly priced property.
The first few weeks of a listing is a critical time in the home selling cycle. Sometimes, and in some markets, the window of highest opportunity falls within the first two weeks. Real Estate Agents and their Buyers show up in droves to see newly listed properties. However, Buyers make split second decisions based on their impressions from the moment that they pull up to the curb. If a home is overpriced in their eyes, they are moving on.
Homes with few showings during the critical ‘New Listing’ time period are very often overpriced. Buyers have driven by, or checked out the photos online, and haven’t seen the value reflected in the listing price. Missing the ‘New Listing’ window of opportunity can certainly cost you more money in the long term than had you properly priced your home from the get go.
Feel free to contact me for a Realtor Market Evaluation today, for your Thunder Bay and area home.