Wednesday, March 11, 2009

Shouldn't I list my home for $10,000 more than what it will sell for so that I have negotiating room?

I was in a listing consultation the other day and the seller asked me a questions that I commonly hear from home sellers...

"Well shouldn't I list my home for $10,000 more that what it should sell for so that I have room to negotiate with buyers?"

Doesn't that seem like logical thinking? I mean no one ever offers you full price for your home, right? WRONG!!! In fact, pricing your home above the market, especially in a flat real estate market that we are experiencing right now in Lincoln, Nebraska, can actually cost you more money in the long run.

You see, if your home should sell around $100,000 and you price it at $110,000 then the buyers for your home will never even see your home. Why? Becuase you have priced it out of their reach. They are not even looking at homes up to that price point. Secondly, the people who are looking in the price range will recognize that your home is not worth the amount you are asking. Therefore, they will not be willing to even make you an offer! This not only causes your home to stay on the market longer than if it were priced correctly, it also means that you must play catch up with the market. What do I mean by playing catch up? Many buyers will assume that since your home has been on the market longer than the average, that there "must" be something wrong with your home. Being on the market longer also means that you will in all probability end up selling your home for lessor value than you would have had it been priced to sell from the get go.

In other words, in order to receive top dollar for your home in the shortest amount of time (in any real estate market) you must price your home to sell! Give the buyers that "fear of loss" which will make them feel like they MUST put in an offer on your home or they will end up losing out.

There are a lot of things that go into being successful at selling a home but pricing is a major factor. If you want to learn more about what it takes to get top dollar for your home in the shortest amount of time in our current real estate market in Lincoln, Nebraska, Contact The Korn Team. (402) 436-3379 0r go to our website

Jason Korn
The Korn Team

No comments: