Have You Priced Your Real Estate Out Of The Market?
Having the real estate economy classified as a buyers market really does make the life of an owner so much more difficult. Whether it’s a buyers market or not, if the perception is there then price becomes an important issue. Overprice your real estate and you could be pricing yourself out of a sale. Even worse, you could be robbing yourself of prospects wanting to view your home.
We live in the age of the internet and with searchable real estate databases like the MLS potential buyers can narrow down their search before even leaving home. If your real estate is priced too high, you could run into a number of problems. The first is fairly evident. If your real estate is worth $400,000 and you put $450,000 on it, those searching for a property up to the value of $400,000 won’t see yours in the search results.
The second problem, buyers searching the $450,000 or $500,000 and under markets will see your property, but they will also see other properties similarly priced. If your property is overpriced, it will quite likely appear that way and be quickly crossed off peoples list ‘to visit’. To resolve this problem, have an appraisal undertaken first. Get an idea of the true current market value of your real estate then decide on your listing price.
Should you list above your valuation? That is entirely up to you. A small percentage over valuation often does no harm. Listing at the point of valuation is even better.
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