Buyers are savvy!
They’ve done their research, they’ve looked (at least online) at all the other homes in your price range. If you’re selling an updated, 1800 sqare foot, 3-bedroom, 2-1/2 bath home with a finished basement and nice yard in a good neighbourhood, and you’re priced $20,000 above all the other similar homes, the buyers are already on to you!
Buyers who can afford to pay your extra $20,000 will be comparing your home to similarly priced homes, which will be larger, more upgraded, or in an even more desirable location – you can’t compete! Best to stack up against similar homes, or they’ll all be sold by the time you decide to drop your price.
The seller (you) becomes the buyer!
Chances are, if you’re selling your home you are also about to buy another! When you find a home you like, you’ll be asking yourself two main questions about the price:
- Can I get a similar home for less money?
- Can I get more for the same price?
If the answer to either of these questions is yes, you will be unlikely to make an offer, no matter how much you love the home.
Most buyers will not make a low-ball offer
A quick internet search will reveal the main reason: they do not want to offend the seller. They would rather keep on looking, or purchase a home that isn’t quite as good a fit, just to avoid offending you.
Probably the second biggest reason they don’t make an offer is they figure you’re out of touch with reality thinking that your home is worth more that comparable homes. In short, they just don’t want to deal with you. Negotiations are very emotionally taxing, and buyers would rather avoid the additional stress of dealing with a difficult seller. You aren’t difficult, but they don’t know that!
Time is of the essence
For the reasons we’ve outlined above, an overpriced home often experiences few showings and no offers…even if it’s only inflated by 2 or 3 percent! If it takes too long to bring down the price, buyers will be wary and reject the property because they think something is wrong with it. One of the most common questions we are asked by buyers: “How long has it been on the market?”
In a worst-case scenario, a seller runs out of time and has to drop the price below market value. They would have been better off to list at market value and saved time, money and a lot of stress.
As you may have read in our post about pricing right the first time, the longer your home stays on the market, the less it will sell for.
According to the National Association of Realtors®, “Recent sellers typically sold their homes for 98% of the listing price, and 43% reported reducing the asking price at least once.” Why did they reduce their price? Because their home was not selling as quickly as other comparable homes.
The reason your agent is trying to sell your home as quickly as possible isn’t necessarily because he or she just wants to have it over and done with. Realtors® know that homes sell quickly when they are priced correctly and staged according to the typical buyer’s eye. The longer your home stays on the market, the lower the eventual selling price.
Take advantage of the market
In 2014, the Kingston market experienced a very bizarre pattern. After flat sales in the previous years (sellers were lucky to break even if they bought in 2012 and sold in 2013), the early spring of 2014 was looking like a good, healthy rebound. Homes that listed in February and March were selling for more than the previous year, and things seemed back on track. However, by June when the market was saturated with listings, prices were already dropping. By August, 3-year-old home with nearly exact specifications as one that had sold in March was now listed around the price that the earlier home had sold, and eventually sold for $5-10,000 less. What a difference a couple of months can make!
This is why we help you list your home as soon as you are ready, and at a competitive price. We don’t want you to be the August sellers who have already had to dig deep on one or more price reductions because the original price was too aggressive for the market.
Less time, less stress
As sales representatives who care about you, we try to save you stress! The quicker the sale, the less the stress builds up. If you are purchasing a new home, you are going to need stamina for the buying process, especially if you are relocating to a new area and starting a new job.
Moving on to life’s next big thing can be pretty exciting, but the stress around buying and selling real estate can have a dampening effect.
We are available to you all year round and have all the time in the world for your home to sell. We can accommodate you if you are not in any rush to sell and really want to take your time and feel out the market for yourself. However, the secret we have learned by repeating the listing process many, many times is that the “right buyer” will come along only when the price is right.