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At Jawitz Properties, we’re Real About Real Estate, that’s why when it comes to selling you home we don’t believe in myths no matter how widely held they are.
In the current market, pricing your home correctly is the single most critical factor in determining time on the market and the final selling price. To help you on your selling journey, we would like to finally debunk the most widely held pricing myths.
If a home is overpriced, a seller risks losing potential buyers who aren’t stretching their search into an uncomfortable price range. The asking price sets the stage and may invite or dissuade buyers based on the rand amount. Just as you would painstakingly prepare your home for sale, you never get a second chance to make a first impression price-wise. We call the first price impression the ‘window of maximum opportunity’ when buyer interest and possible offers should be at their highest.
Actually, the opposite is true. A well-priced home tends to generate a lot of interest and can result in multiple offers. A shorter marketing span brings strong offers that could result in a home selling for over asking price or at the very least, at a price which is higher than when the home has been on the market for an extended period of time.
We have no doubt that the relationship between time on the market and the final selling price is not a positive one, no matter how long you are able to ‘wait it out’. The longer a home stays on the market, the more likely buyers are to question its value in any market.
When faced with an offer that is less than what you want, your initial reaction may be to draw a line in the sand with a number that you deem to be “your bottom line.” Who decides what a property is ultimately worth? Buyers see the glass as half empty versus half full, and in some markets, such as the current one, they are holding the cards. As a seller, you can decline an offer based on a number, but you may never get there with another buyer, and a subsequent offer may be lower or layered with conditions and complications. In this market, our advice is to work with the offer you have.
Sellers are often disappointed at the initial price when an offer is received and ask “why so low?” In this market, buyers are not going to be generous with their initial offer. Unless it is a really hot property, priced aggressively or in a low-inventory market, no buyer is going to willingly offer more than they have to, especially on a first offer. They want to get a sense of the seller’s flexibility or lack thereof before deciding their next move. Remember it not where you start with a buyer but where you finish.
Unfortunately, they do. The buyers are looking at how much they are going to have to spend to bring the home up to today’s standards and are going to deduct accordingly when formulating an offer. You would do the same!
A bird in the hand is worth two in the bush, especially in this market. A buyer has stepped up and put pen to the paper with a proposal. An offer is an invitation to negotiate and begin discussions about the property. It can be easy to get offended, but it’s best to keep emotion out of negotiation as much as possible and work in good faith with what’s presented. A good agent will know their buyer and will learn quickly if it looks like a deal may come together.
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