Fight in your own weight class, or be at the mercy of the market or more specifically the competition.
The vast majority of homes on the market are over priced. Some intentionally, reasoning that buyers never offer full price or sellers need room to negotiate. Consider the analogy of a boxer before deciding to employ the over-priced approach to selling.
A 160 lb. Middleweight boxer has trained hard, has a game plan and feels he can compete in the Light Heavyweight (175 lb) class.
Once in the ring and bell sounds the Middleweight contender will soon find out if competing in a higher weight class is a good idea. The decision to challenge a larger competitor comes into question after receiving the first hard hit to the face.
The real estate equivalent begins when the new listing appears in the MLS and national home search websites.
- Punch 1: No or few showings as a new listings,
- Punch 2: Weeks and months without an offer, and
- Punch 3: Finally, a low offer.
At this point, the boxer is usually out after a count of 10, and the seller is off the market as an Expired or Withdrawn Listing.
What sellers may not realize is that their effort as a “spectator” (trying to sell their house vs a “participant” closing on the sale) is now part of the public domain for knowledgeable buyers to see. Spectator sellers will have a tough time in the next round unless they change the condition of the house, lower the price and/or sit on the sidelines long enough for the market to appreciate.
Over pricing will most often lead to what we refer to as a False Start; i.e., any situation that results in no sale, less money at closing and/or more days on market.
Contact us when thoughts of moving come to mind, as we prepare the seller and position the property to give sellers the best opportunity to net more at closing in less time.