We all want to get the most value out of our homes. Let’s be honest, they are an expensive investment, with a lot of money and time put into them. However, it’s also important to take into consideration what the market actually values your home for, because if the home is overpriced, it will sit stagnant on the market without any written offers.
In real estate, there is a solution to every home that doesn’t sell, and that’s decreasing the price. And it’s not associated with your agent’s efforts, because they can be pulling every trick out of their hats to market your property, but if your local market shows that your house on paper is overpriced, it simply won’t sell.
We’d love a cash buyer who will fall head over heels in love with our homes, enough so that they are willing to pay over the appraisal. And although this can happen, it is incredibly rare, and should not be relied on. Because most buyers apply for a mortgage to purchase a home, and the bank will not finance your sales amount if the appraisal comes back lower.
By listing your home at the correct market price, not only can you guarantee a much faster sale, you can also avoid the headache of going under contract with a buyer, with the anticipation of a close, only for everything to fall apart towards the end because the appraisal values did not match up.
Discuss with your agent a realistic price point for your home. Choose one that you can trust to list at a price that ensures it’s sale, at a value that works best for you, in terms of what the market will allow. Keep in mind that listing it slightly lower than it’s value is going to have a greater likelihood of a bidding frenzy that drives up the cost than expecting an offer on an overpriced home.