Overpricing Your Long Beach Homes and Condos, is not a good idea. Thinking that raising the price to leave wiggle room for negotiation is the first trap to avoid. That game is old and played out, buyers aren’t interested in playing. They want to offer you less than asking price and they want asking price to be at or below market. They want “a deal” and if they don’t get it, they aren’t going to buy.
Here is a little sneak preview of what you will be up against if you decide to test the waters and list your home or condo above market value.
7 Dangers of Overpricing Your Long Beach Homes
1) MINIMIZES OFFERS
Overpriced properties discourage prospective buyers from making offers since the difference between the listed price and market price often negates reasonable negotiation. A more realistic price is much more likely to receive a realistic offer.
2) LESS SHOWINGS
Overpriced listings get less showings. Agents often will not show overpriced listings and lose interest in overpriced properties that sit on the market for any extended length of time without drastic price reductions. With so much inventory on the market it is in the buyers best interest for the agent to show homes within the buyers price range; agents also do not want to lose credibility with their buyers. Agents do not spend as much time showing these homes and condos as they might if they had been priced right at the beginning.
3) QUALIFIED BUYERS
Overpriced properties fail to attract qualified buyers. You (the seller) are perceived to be unrealistic and problematic. If you are very overpriced your agent is perceived to be less than intelligent for having taken the listing at that price to start with, but that is a whole nuther issue. It is in your best interest to drive in as much buyer traffic as possible early in the listing. No Traffic = No Buyer.
4) LOSES PROSPECTS FROM SIGNS AND ADVERTISING
Prospects that learn about the property from the sign get turned off if it is overpriced. It is the first question they ask. They want to know the price before they ask how many bedrooms and baths or about condition. They will not even view the home if you are overpriced. Price is everything in todays market. Buyers viewing the property online will use available compare tools and pass on seeing your home.
5) FINANCING PROBLEMS
Appraisers will not be able to bring in the value on the home and lenders will not fund a loan for an overpriced property. If for some reason the overpriced property passes appraisal, the underwriter will likely quash it toward the end of the escrow timeline. You will have been off the market for that timeline and market prices will have dropped further. An all cash offer with the appraisal waived is a fantasy. No buyer, regardless of their ability to, is going to overpay for a Long Beach home, in todays market.
6) PRICE REDUCTIONS
Reducing your price to keep up with the market is critical. You should check your price every week or two with your agent and make sure you are priced at or under market.
7) LESS FOR SELLER
Eventually market interest in overpriced properties completely declines. As this stage is reached, many sellers become desperate and begin to feel that they would sell at any price. In the meantime, the seller must bear maintenance and holding costs. Additionally the actual market value will have decreased while the property sits on the market. The net result is the seller nets much less than they could have if the property was correctly priced in the first place, this is called “Chasing the Market Down” and is the absolute worst mistake a seller can make in today’s market.
Not pricing your Long Beach home or condo right and not taking appropriate price reductions in a timely manner, can result in:
- Your home not selling
- Short Sale
If you are considering selling your Long Beach Home or Condo be smart, price your home to sell. After all, you don’t want to list the home, you want to sell it. Contact us today for a free home evaluation.
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|Laurie Manny Long Beach Realtor (562) 212-5420|
|Main Street Realtors Belmont Heights 244 Redondo Avenue Long Beach California 90803|
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