The Cost of Overpricing Your Home
If your house isn’t selling the number one reason is always that it’s over-priced. At the end of the day, price overcomes any objections a potential buyer may have. And as long as it’s over-priced, you’re going to find yourself chasing the market down. Now I know that may be hard to hear but as a real estate professional my job isn’t to tell you what you want to hear. My job is to share with you the cold hard facts that will help you effectively price your home so that you can sell it for top dollar.
In a balanced or declining market, if you price your home too high, there is a good chance you will find yourself chasing the market down …and maybe never catching it. The chart below demonstrates how pricing your home over market value can end up costing you more money than if you had of priced it correctly from the start.
Chasing the Market Down Puts You in a Losing Position
If you are selling your house in an area of market decline, you must understand these basic dynamics of market pricing and positioning.
If Sellers fall behind a market with falling home values, they end up chasing the market down, because home values are always falling faster than their price reductions.
The ability to learn faster than your competitors may be the only sustainable competitive advantage – Arei De Geus
Pricing Ahead of the Market
As you can see, in a declining market, the Seller that lists their home at fair market value (or just below fair market value), ends up selling their house faster, and for more than the Seller who prices their home too high. This is why understanding current market conditions and pricing strategy is vital if you want to put more money in your pocket.
In a declining market, if you want to sell your house fast and for top dollar, the best pricing strategy is to price your home slightly ahead of the market.
Need Help?
If you are thinking about selling your home and need help understanding the current market conditions and how to effectively price and market your home, give me a call. I am here to help.
Glen Hopkins, REALTOR
100-2429 152 Street
Surrey, BC V4P 1N4
Phone: 604-612-5164
Email: glen@glenhopkins.com
Current Sales Statistics for All Property Types in South Surrey / White Rock
