It's only natural when putting your property on the market, you would like to get as much money for it as you can. After all, after buying a house, most house owners anticipate getting back all of their money in addition a profit after selling it down the line. As a result of the current recession, several house owners are in a scenario in which they're under water & just hope to sell without owing anything more.
It's vital to keep in mind that all markets are local - the real estate market in Austin will be different from the market in Indianapolis. Likewise, even submarkets should vary - like the condo real estate market in comparison to the single family house market. Still, whether you're in a difficult financial scenario or not, it is vital to be realistic when pricing your house. Having a realistic price, in fact, is the key to getting your house sold for 3 reasons.
#1: Sell It Quicker. 1 reason for choosing a realistic listing price for your home is to get it off the housing market as quickly as possible. Not only can this help you save money by getting out from beneath your mortgage sooner, but you are additionally more likely to receive a better price on your property when you are able to move it quickly. It's a fact that houses which stay on the real estate market for long periods of time sell at a lesser amount than those which are only on the real estate market for a short period of time. This is simply because listings become "stale" after being on the market for too long a period of time. When this occurs, buyers expect being the benefactor of a dramatic reduction in price.
#2: Widen Your Buyer Market. By having a realistic asking price on your property, you'll also raise the number of potential homebuyers. Indeed, many prospective buyers are going to just skip right over your listing if your price is set too high as it is outside of their price range. Therefore, simply put, when you set a price that is too high, you push away a lot of individuals who may have otherwise been interested in purchasing your house.
#3 - Allure Real Buyers. Attracting actual homebuyers is another reason to have a realistic asking price for your home. Individuals who are serious about buying a home will have already done some homework regarding houses in your community, and will already have a fair idea of how much your property should be worth. They're most likely to avoid it if they figure out that you have set an unrealistically high asking price for your home - in fact, a lot of buyer's agents are going to advise their clients to steer clear of properties which are unquestionably over priced.
The heart of the matter is that properties which are unrealistically priced do not sell nearly as easily or for as much as those which are reasonably priced - and while you may want to raise your asking price in order to make some room for negotiations, picking a realistic price is going to get you the most money in the end.
