Facts About Home Pricing:

• Price your house too low and it probably sells fast but you miss out on what it could have sold for, (if properly priced and marketed).
• Price your house too high and it remains on the market and tarnishes rapidly, which only adds to your stress.
• Today’s buyers do their homework – they know when it’s right.
• The unprecedented sellers' market (2002-2005) has long passed.
• The amount you sell your home for is NOT a competition. SEEK A FAIR PRICE - PERIOD.
• It is very unlikely that you will get the price you could have gotten 18 months ago. That is the disadvantage of selling in a Buyers’ Market.)

Get A CMA (Comparative Market Analysis).
Do not rely on the ITICSIF technique. The ITICSIF (I Think I Can Sell It For) technique is one of the biggest contributors to seller stress, lost time and loss of revenue. Don’t get me wrong, there are strategies and there are times when a certain strategy is appropriate. The trick is to select an strategy based on factual information, not someone’s speculation.

I suggest you be skeptical of stories you hear - try to check facts for yourself. Often, you are not privy to the bumps and negotiations that occur along the way. Recently, a client told me about "his friend's property down the street" that sold for a certain amount. When I checked, real estate records showed that the asking price was indeed the amount mentioned BUT the actual sale price was more than 25% below the asking price. His former neighbor had forgotten to mention the reduction.

What If My Property Is Over-Priced?
When a property is overpriced fewer agents will preview or show your property. As Realtors it is their job to know local market conditions and home values. If your property is priced higher then all the competition, Realtor won’t waste their (or their buyer’s) time. Their time is much better spent with homes that are priced more realistically.

When you later drop the price, your house is past it’s prime or old-news. You will never be able to obtain the level of interest that occurs when a property first goes on the market. Your best window of opportunity has been lost and the property will probably take longer to sell.

IF you were fortunate enough to find a buyer that offers you your above market price, your buyer will still need a mortgage. The lender will require that the property be appraised. If the appraiser does not find comparable sales, current market conditions or other factors to support your sales price, the appraisal will fall short and your deal is likely to fall apart.

If your house goes back "on the market" you are now forced to lower the price to where it should have been originally but look at the time and marketing edge that was lost. It will be harder to get a good offer. Agents and their buyers are likely to consider it a forced sale so they will tend to make lower offers.

So you can see by overpricing your home in the beginning, you could actually end up settling for a lower price than you would have normally received.

As I mentioned up top, fewer agent and buyers will take the time to schedule an appointment on an overpriced property. Maybe, if they happen to be in the neighbor anyway, just maybe they will schedule an appointment but you know they will favor the lower priced properties and probably even see the lower priced properties first. They may not make it to your appointment.

What If My Home Is Really Worth A Higher Price?
The problem is getting people to see it. The assumption will always be that it is over priced because that is the case the majority of the time. It must be shown; words are cheap. Agents and buyers are not going to waste their time scheduling an appointment to see your property unless they see evidence of a superior value. You must show it to them and an on-line marketing presentation is the best way to show that your property is a true value -- worth more than the asking price.

As an example, I once listed a property for a price 48% higher than any property on the street had ever sold for. I did my homework, used my intuition and showed why the property warranted the high price. I gave it a customized web page, created a professional virtual tour, provided good solid text to accompany each still and tour photograph, and used good solid marketing to get the word out.

The property received multiple offers and sold for full price. The value was there and I was able to convey it to agents and buyers. The appraisal was not a problem – the property appraised for several thousand more than the asking price. So, to answer the “worth a higher price” question is, call Mark Swiss.

What If My Property Is Under-Priced?
There good news and bad news. The good news is that your property is should sell relatively quickly. The bad news is you may lose your ca$h. A flurry of activity and quick offer can be a tip-off of a under-priced property. The only way to know is by getting all the facts. It is another reason to get a CMA.

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