Yes, I have heard it too many times before. Why is that offer so low? I want $XXX,000! I don’t care how the banks value my property, they are too conservative! My home is worth MORE!
How much your home is worth to you, may not be how much the home is worth to the prospective buyer. Don’t get me wrong, you love your home, it is priceless! However, when it is so priceless to you, it may be priced less by the buyer. The more the over valued property is exposed to the public eye, the property may become ‘over-exposed’ and you may end up selling far lesser than what you had expected.
here is a story that has happened before
Mr. Buyer wanted to buy an apartment in Casa Merah, he offered for a particular unit through one agent, and came back with a rejection of offer. He then approached another agent, and the same thing happened. In total, he approached 4 agents, marketing the SAME unit, all in the span of less than 2 days! Well, the owner thought he had 3 or 4 buyers! I was the 4th agent he approached, and I had the same rejection. Mr. Seller had also upped his price because his property was so hot!
I had my suspicions and approached Mr. Buyer if he had offered through any other agents, and that was when I found out the truth! His reasoning was that the other agents may not be good enough to close on the unit, so he tried another and yet another! I told him off gently, saying had he not approach so many agents in 1 day with the same offer for the same unit, he MAY have gotten what he wanted!
Now, that property is over-priced, and now Mr. Buyer has even refused to consider that unit, even if Mr. Seller had lowered his price! The morale of the story is, sell at the price which the market is commanding, and trust your agent to get you the best possible price!
As Real Estate Professionals, we have always advised sellers to give the exclusive rights to an agent to market the property. When it is an open listing like the above scenario, you likely will get a good price for your unit. Instead of getting a good price at current market situation, the agents will want to be the first to sell the property, thus, lowering the value of your property.
I found the following information from another blog. and I feel that it is quite true when it comes to selling your home…
BOTTOM LINE:
- Overpricing your home will NOT help you get more money from the sale.
- Overpricing will probably stop your home from selling and you will end up selling for less.
- Holding off until the market turns will not help you sell for more unless you can wait a very long time – most likely years.
- What you WANT for your house is irrelevant to the current value of your house.
- What you NEED for your house is irrelevant to the current value of your house.
- What you PAID for your house is irrelevant to the current value of your house.
- What you OWE on your house is irrelevant to the current value of your house.
- What your next house will cost is irrelevant to the current value of your house.
BOTTOM BOTTOM LINE:
The question is never “How much do I want to get for my house” the question is “Do I want to sell my house?” If you DO want to sell, then you have to price it based on what people are willing to pay. If that number won’t work for you, then you probably should not be selling.