No, I’m not talking about ‘giveaway’ pricing, but right pricing.

In today’s market my experience with working with lots of buyers is that they look at far more homes than they used to before making a decision.

After looking at several homes and doing lots of research and online searching they become very adapt at recognizing an overpriced listing as well as one priced correctly.

This month I sold a home to some buyers that had put an offer on another home in the same neighborhood but at a price considerably below the list price. The sellers countered back at a figure very close to their original asking price.

The home they did not buy has now been on the market for almost a year and in both my buyers opinion and mine, is about $25,000 overpriced for the current market. Additionally this home is sadly in need of updating to hope to command anywhere near the asking price.

Here’s a photo of the kitchens in both homes.

knoxville tn homes for sale

$25,000 overpriced, dark, drab interior in need of updating.

knoxville tn homes for sale

Priced to sell, “move in” condition, with light & bright interior and decor. Which one would you choose?

The home they bought is same style, a similiar square footage but was priced at current market value, in ‘move in’ condition, AND was about $20,000 lower than the first home we made an offer on. The home they chose and bought was on the market 2 days when we reached an agreement with the sellers for only 2.5% less than asking. The buyers felt good about making an offer that close to the list price because they felt good about that price and saw the value.

Here are some of the pitfalls of overpricing:

  • Buyers know what houses should sell for generally. If yours is overpriced they will likely pass it by for something more competitively priced.
  • Buyers will look and leave because they’re expecting more in your home than the price dictates.
  • You’ll attract fewer offers and offers will come in below your asking price but those offers will be closer to fair market value.
  • Buyers will use your home as an example to help them buy other homes that are priced closer to the market.
  • And even if you do find a willing buyer at your price you then have to pass the mortgage appraisal hurdle. Appraisers know values very, very well (that’s what they’re paid for) and if you can’t get an appraisal at your asking/selling price then no lender is going to grant a mortgage to your buyer and you can’t sell.

Visit www.KnoxvilleHomeCenter.com to see some right priced homes; call me to help you pick one out.

Best wishes to all for a Happy New Year!