But some sellers don’t like a hot market!
The question many sellers ask their sales rep in this market is “What if I under price my home?” Experience would tell us that the bigger problem in a hot sellers’ market would be “What if I over price my home?”
In the type of market we are currently experiencing, under pricing a home will result in many showings and likely a number of competing offers. By under pricing, I mean being close to market value, but just under. Buyers know the prices in the market and can be put off by a seller grossly underpricing their home as easily as by a seller grossly over pricing their home. If the sellers price their home too low, buyers may assume the seller is just fishing for a sky high offer, and wait to see what happens. Buyers don’t like to guess what the asking price should be.
Speaking of over pricing… Some sellers believe that they can’t over price their home. They believe that there are so many buyers looking that one of them will buy their home regardless of the asking price – they just have to wait for the right buyer. The buyers looking in our current market are well versed in prices. Odds are they have lost out at least once in competition, and know the market almost as well as their REALTOR®. They may be prepared to pay top dollar, but they will not pay well over market just because the seller is asking. By pricing their home too high, sellers take the risk of being ignored by the buyers. The buyers will wait for the seller to drop the price, and often by then the seller’s home has been sitting on the market long enough that buyers perceive that there is a problem with the home. Over pricing the home at the start can result in the seller receiving less money for their home than they would have, had they priced it closer to the market value initially.
If you are considering selling your home, call one of our Coldwell Banker Community Professionals. They can help you determine what your home is worth today!