[ August 14, 2014 ] by Peter Kim
Overpriced Home? How This Could Lose You Big Money

Is your house  sitting on the market day after day after day? Statistics show that if you don’t sell your house within 14 days of putting it on the market, the price of the house is above the market. According to the NAR, if you don’t sell at the peak of activity (2 week period after the house is live on the multiple listing service), you have about a 4% chance of selling it at the price you currently have it.

You’re probably thinking to yourself, well you can always lower the price but you can’t always raise it!

Here is why that is the wrong type of thinking.

Our goal here is to sell your house for the most amount of money possible correct?

So you believe if you price it a little above the market, someone may just come along and purchase it at that price. The reality is this VERY RARELY occurs.

So what’s the harm? If you are serious about selling your house, you will lose more money the longer it has been on the market.

Let me illustrate a very simple example:

You go to a store and see a refrigerator that’s for sale. You are interested yet you don’t buy it today. About 2 weeks later, you see that the refrigerator is still for sale and now they’ve reduced the price $500. You still don’t buy it today. About a week later, you find that same refrigerator and now it has a “manager’s special” tag on it and the price reduced now another $500.

What question are you going to ask yourself? Like most people you’ll probably ask, “What’s wrong with it?”

There could be nothing wrong with the refrigerator! yet, buyers psychologically gear towards a flaw in the appliance and become even more reluctant to purchase the refrigerator.

This same phenomenon occurs with your house on the market. The longer it stays on the market, the more they will question the value and condition.
In scenario two, if you price it right, or even price it a little under market value (recommended), you will get multiple offers in today’s market and people will bid up your price like an auction and the majority of the time, they end up overpaying for your house.

So, do the right thing and…

your friend at ODIGO


Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our Newsletter
Lorem ipsum dolor sit amet, consectetur adipiscing