You and your Realtor may know that you would sell for $10,000 less, but the buyers do not know this. As a result, your overpriced property may receive little attention.
Don’t be fooled into thinking your house is worth more than someone is willing to pay for it, or that it’s just a matter of waiting for the “right” buyer to show up. Surveys show that the longer a house is on the market before being sold, the greater the drop in price from the listing price when it does sell. The buying public eventually sets an accurate price. An overpriced house just sits on the market, waiting for a price adjustment before it will attract a buyer.
Consequently, your Realtor may advise you to reduce the asking price if buyers fail to surface after a certain period of time on the market. If you are serious about selling your home, you should take your Realtor’s advice. If the first price reduction doesn’t generate a buyer, another reduction may be necessary. The monetary value of a house is only what someone is willing to pay for it, but if the market analysis is done correctly, you will get the maximum amount–and a timely sale.
Sean Remington is president of Sean Remington & Associates, an Albuquerque, New Mexico realtor.
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