A Little Background
Your home has meaning, value and character. You have lived there and enjoyed this period of your life and want someone else to see how special it is. The kitchen is outstanding and great for hosting, and the backyard holds years of barbecue memories. Many sellers looking to sell their luxurious South Florida property believe that their home is worth more than their neighbors, so they list it at a higher price. We hear this quite often.
It is important to remember that you never want to be the highest priced home or lowest priced home in the neighborhood. Furthermore, you must realize that the market determines the price of your home. The last thing that you want to do is scare off potential buyers who are ready to purchase!
Our Position In The Process
Whatever the situation may be, this is something that we understand and can appreciate. However, our job is to assist you in the sale of your luxury South Florida property so that you can find a realistic buyer who can purchase the property at a competitive price.
3 Reasons Not To Overprice Your Home:
1. The first couple weeks are the most important
You will know within the first couple of weeks if your home is overpriced. There will be a lack of interest, offers and showing requests.
The solution? Contact your South Florida real estate agent to adjust the price. If you are not receiving any interest within the first couple weeks of listing the property, then keeping it on the market will not change the outcome. Change the listing price of the South Florida property to market value for better results.
2. Increased risk of making less profit
Overpricing a luxury home can actually result in low ball offers and a disappointing sale. The probability of making less of a profit greatly increases. After a period of time, most sellers will realize that the home is not attracting interest. Sellers will then reduce the price to market value to capture interest.
However, this strategy is ineffective because people will wonder why the home price was reduced. Buyers will assume that there is an issue with the property and will become hesitant to coming in with an offer of value. Therefore, you end up leaving yourself with less leeway in the selling process.
3. More time on the market
Unless you have all of the time in the world to sit and wait for an unrealistic buyer, then you need to price your South Florida home correctly. It has been proven that homes listed at a higher price than market value are less likely to sell within the first couple of months. The best strategy to tackle would be to meet with your local South Florida real estate agent and have them show you the latest market reports and statistics. You can then decide on a competitive price that will create interest and a real buzz.
If you do not have people interested or calling to see the property, then you need to adjust. Listing your home at a competitive price can actually increase your chances of selling it for a higher price. When there is more than one person interested in your home, it can result in a bidding war!
Price your home at a competitive price to achieve the highest dollar. It does not matter what the market is. You have to keep in mind that being the highest priced home in the neighborhood actually works against you. The same concept applies to being the lowest priced home in the neighborhood.
Overpricing a home is a very common mistake. The most important thing to remember is that pricing your home at an extremely high value, does not increase your chances of selling at a higher price. It actually reduces it.
All in all, meet with a professional South Florida real estate agent at Alan Abramson. We can help you make the best possible decision on how to list your property based on market value to receive quality offers.