Selling your home is a very emotional time, because not only do you have money involved, but you have memories and time invested there. So, this might be why seller's have a hard time even responding to an offer below what they are asking. Seller's can find it hard to be objective about their pride and joy. However, unless the seller can become detached from the house, especially in this market, they will have a difficult time selling the home. The seller must put themselves in the buyers shoes. If the seller was the buyer they need to ask themselves, "Would I pay this price?" Right now, low offers are common on homes that have been on the market for a while; or on homes that have had very few, if any, offers. However, if the property is priced right, from the start, then hopefully the buyer will recognize that this is a great deal and jump on it, before losing it to other buyers. Sometimes we will see inflated prices due to the seller's wanting to have some negotiating room. People usually won't even look at a home that is overpriced, especially when you have thousands of homes on the market, in any given area. Seller's need to make their home as attractive to the buyer as possible, and one way is by pricing it right, from the beginning. If your home isn't selling, and it has been on the market for a few weeks, it may be time for a price reduction. In reducing the price, it is important to stay in front of the curve. If the prices are going down, get in front of it, otherwise you may have to sell the house for much less, than if it was priced right from the start. If you are hit with a low offer, don't take it personal, it is a beginning, and you now have someone willing to talk to you about buying your house. (If your home isn't competitively priced, expect low offers; especially if the market in your area is shaky.) Also, lenders are not as easy in giving loans, so take that into consideration and have your Realtor make sure they are preapproved. If you accept an offer, and the buyer isn't preapproved, have a clause in the counter offer stating that buyer is to get financing secured within several days of you accepting the offer. Also, find out who the lender is and make sure they are reputable. Also, make sure to included the number of days for lender approval. You don't have to accept a contract as it is written. You can pick and choose what you are willing to agree to and what you are not. Have your Realtor draft up a counter offer. Just make sure you are being realistic in your expectations. You don't want to lose the buyer, unless they are being totally ridiculous. Most are not though. Keep your options open. Focus on what your goal is; why you are selling. Any questions, feel free to contact me at: Now is a perfect time to buy. |
Is your home overpriced for today's market?
4 comments • Earl "The Pearl" Sorrells-Palmdale, Rosamond, Lancaster • May 08 2008 10:33AMComments
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If you have some showing and no offers, the market is telling us it's overpriced.
No showing and no offers, the market is telling us you're way over priced.
Great post for todays market. It's no time to experiment or try to push it higher on your own. We only have one shot at being a new listing with the right price. History tells us the best homes sell faster and they usually get better offers than those that linger.
This is what I tell my sellers.... you only get one shot at the buyers, price your home where you want to sell it, dont wait 4 months then drop it to that price... then you miss all the buyers and they bought a home that is priced right!
Great post!!
Ara, THat is great advice. THank you for the comment.