Posted by: Roby Robertson | December 3, 2009

Listing Your Property With To High of a Price

The biggest issue many homeowners face when listing their house for sale is the price. You want to get the most you can, but be careful when it comes to pricing it to high.  This may be even more of an issue in an area like Lake Norman where we have grown accustomed to tremendous growth in our home values.

Listing Your Property With To High of a Price

For no particular reason, you have picked up the itch to sell your house. Maybe there are developments in your area that have caused massive appreciation and you simply want to cash out while the going is good. Maybe you just are interested to see what someone will pay.

In making the decision to sell, you hire your Lake Norman Agent to do the research to find out what comparable homes in the area are selling for and how long it takes them to sell. You decide to list your property at the top of the market because you have serious upgrades. While you may be willing to wait a bit for an offer, you run a risk of sabotaging yourself.

Time is a two-way street in the real estate industry. While you are probably not particularly interested in waiting a long time to move the property, buyers are considering time as well. Specifically, they are wondering why so much time has passed since your home was first listed. Is it an indication that there is something wrong with the property? Many potential buyers will start to think so. If you price the property at the top of the comparable market, you run this risk and selling becomes very difficult.

One justification many sellers make for picking a high price are upgrades done to the property. In many scenarios, this is logical and makes practical sense. That being said, you may be in for a nasty surprise. Most buyers prefer to make the upgrades themselves, not pay a premium for what you have done. Ultimately, this means the higher price may find little interest because the value of the upgrades is ignored by the potential buyers. This can also lead to the frustrating situation wherein you realize you spent more money on upgrades than you will ever get out of the property. Ouch.

The final risk associated with pricing your property at the top of the market is the potential it will be ignored. Buyers in today’s market are not willing to pay top dollar even for luxury homes. Savvy, well represented buyers will not take the bait.

Pricing your property for sale is a tricky issue. Figure out your market and make your own conclusions. To maximize profit, it is best to be in the middle of the market, but always below other homes that are superior to your property.

Lastly,  Remove the personal aspects of the sale.  It is a business transaction and personal attachment can be a detriment to your success.

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