Recently, Karen was representing a set of buyers who found a house that they really liked. It was in the neighborhood they wanted, it was exactly the right size for their family, and it (almost) fit their budget. Truth be told, according to the data on other similar homes that had recently sold in the neighborhood, it was overpriced by about $20,000.
Karen’s clients decided to put in an offer at what they believed to be fair, and the seller flat-out rejected the offer, so they went on their way and continued looking for other homes to buy, but Karen kept an eye on the property because her clients liked it so much. When she saw that the price of the house dropped, her clients wanted to resubmit their original offer, which they did.
After a few days of negotiation, the sides were deadlocked, with $5,000 separating them. Karen’s buyers backed away from the deal because they had bent as far as they were able to go. Karen continued to keep an eye on the property, and when she saw that there was another price reduction on the house, she let her clients know that the asking price was now below what they had previously offered.
“Don’t bother”, her clients said. “That guy has been such a pain in the ass, can you imagine how painful it would be to have anything go wrong while we’re waiting to close? No thank you, let’s keep looking.”
It’s sad but true. When you overprice your house, you might get lucky and find someone who is willing to overpay for your home, but there are a host of risks that come with it, not the least of which is making potential buyers so angry that they aren’t even willing to make an offer any more.
In this episode, we delve into home pricing strategies and what you can expect from each one. An experienced agent will be able to help you select the right pricing strategy for your home to help you reach your goals, no matter the condition of the market.