When we discuss the list price with home sellers, the majority of them choose a list price that is higher than fair market value.
Instead, we recommend choosing to set a realistic sales price. It will give your home its best chance of selling. Some sellers; however, even after looking at the data, still want to price their home tens or even hundreds of thousands of dollars above what the market will support.
Everyone thinks their home is Maria Carey’s dream house.
These sellers believe that maybe if they price their home high enough Maria Carey, or one of her family members with a large budget will see their house and come and buy it.
The problem with this line of thinking is that it never works. Yes, Maria Carey will probably eventually buy another house. But it’s not going to be yours. This is because when they see that home and compare it to other homes that should be in that price range they instantly recognize the home is over-priced. Even Maria Carey would decide to pursue other more reasonably-priced homes.
What else happens?
In addition to Miss Carey taking a pass, these sellers have virtually guaranteed that the buyer that should be buying their home won’t buy it because they’ve priced it so far out of the buyer’s range the buyer won’t even see it. When this happens, their home will sit, and sit, and sit.
Likely, these sellers won’t get any offers or if they do the offers will be far less than they would have received had they priced their home correctly.
So, what should be done?
The answer is simple. When selling your home, avoid the temptation to sell it to Maria Carey, or any other buyer looking at homes that should sell for more than yours. Instead, focus on selling to the buyer in your range who loves your home and is willing to pay top dollar for it based on current market conditions.