It’s not unusual for sellers to
have an over inflated opinion of the value of their home.
Often this comes from
pride of ownership, which is not a bad thing. Homeowners
who take pride in their homes usually keep them well maintained.
This preserves the value of the property. Sometimes, however,
pride of ownership can get in the way of making a rational
business decision. Recently, homeowners put their Oakland
Hills, Ca., property on the market with expectations of
a high selling price.
To
encourage competition, they listed it for $759,00, which
was a price that was lower than they were willing to
accept. They received an offer soon after they listed
for $785,000. The sellers rejected the offer because
they wanted more than $800,000. Subsequently, the property
languished and fell off the market. Another seller countered
an excellent offer that he received soon after the listing.
He was also hoping for a higher price.
It
has often been said that the first offer is likely to
be the best one you’ll receive. While this saying
doesn’t hold every time, it does contain a kernel
of truth. Your best chance of selling your home for the
highest price is when it is new on the market. If a property
is priced right for the market, and the market is active,
you might receive an offer, or offers, within the first
several weeks of marketing. Buyers tend to make aggressive
bids for high demand listings in order to beat the competition.
After
your home has been on the market for a period of time with
no offers, you are less likely to receive aggressive bids,
unless the market changes in your favor over time. However,
if the market is steady or slows, you could find the appeal
of your home diminishing over time. This usually equates
to fewer offers at lower prices. Buyers typically ask how
long a listing has been on the market and discount their
offer accordingly.
Home seller tip: You’re taking a gamble when you
turn down a strong offer from a well qualified buyer. If
you wait, you might not see as good an offer later. If
word gets out that you rejected a good offer, this could
discourage other buyers from making offers. They may wonder
if you’re serious about selling.
Just
as it’s risky to turn down a good offer in hopes
of something better, it’s also risky to accept
an offer before your home has been exposed to the market.
If your home is priced at or under its market value and
it hasn’t been adequately marketed, you could shortchange
yourself.
Before
you sign a listing agreement, make sure that your real
estate agent will provide you with an aggressive marketing
program. You want as much exposure for your home as possible,
as quickly as possible. If your home is priced right
for the market, and it receives comprehensive marketing,
you should feel confident that the offers you receive
reflect the current market value of your home.
If
after professional marketing exposure, you receive an
offer or offers that are less than you had hoped for,
you may need a reality check. Your pride of ownership
could be clouding your judgment of current market conditions.
The Closing: Your home is only worth what a willing and
able buyer will pay for it in the current market.
Source:
Story provided by: Dian Hymer, Inman News
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