September 14, 2020
Yes, the real estate market is super-hot right now. It certainly is a “Sellers’ Market” here in Northern New Jersey. HOWEVER, overpricing a home does not translate into a higher sales price; you still have to price the home properly to enjoy multiple offers.
Why?
- Your buyers are no dummies. They understand pricing better than many sellers do. They have analyzed and over-analyzed the market and know where your home should be priced. If it is too high, they will by-pass it until you reduce the price of the home. Remember, you have an electronically empowered consumer – they have more information about your home and the local market than most sellers can imagine.
- Lenders are no dummies. We all know what happened in the last crash. At that time, appraisal standards were far looser. No more. If the house fails to appraise, the lender will not lend. No mortgage, no sale. You need to price in line with appraised value.
- Don’t be a dummy! Unless you look like a good value, buyers will not pay above asking price. You need to attract MULTIPLE BUYERS to have a bidding war. IF YOU DON’T HAVE MULTIPLE BUYERS, AND IF THEY WON’T PAY MORE THAN ASKING PRICE, YOU HAVE NO BIDDING WAR.
The faster a home sells, the higher the price. Overpricing and letting it sit on the market waiting for a buyer to come along and negotiate is NOT the way to go in this market.
So…to insure you will get the highest price for your home now, or at any time, price it properly. If you price it right where it should sell, you will generate those multiple offers and get over-asking with the best terms possible.
Don’t make the mistake of reaching for the stars and over-pricing. It will backfire on you.
