Seller QuestionsQ. Can I price my house above market since I can always drop the price later?
A. This mistake can cost a Seller big. Your objective is to sell your house and get the best price. With that in mind, if your price above what the market in your area will bear you may lose money. Why? The first few days and weeks a house is put on the market is it's most active. An overpriced house is competing with similar houses that are putting downward pressure on prices. Some of these houses may even have more features or a bit larger. Therefore, the overpriced home will be virtually ignored and not likely to generate offers. Sooner or later the overpriced home is forced toward a lower price point. This is due to the law of supply and demand at work. The market is currently flooded with inventory and this fact alone is driving prices downward. Now buyers and their agents are wondering why the overpriced home has been reduced. The seller of an overpriced home may end up with an even lower price than it's competing homes because of the length of time it has been on the market. If you find yourself in this situation, it will take a skilled real estate agent to market your home. If not, count yourself luckey and contact a skilled, internet savey real estate agent that can provide you with a competitive market analysis. Q. What is a contingency? A. Sales contract usually have some contingency clauses that sale is subject to some condition. Comon contingency clauses are "sale is subject to buyer obtaiig financing" or "Sale is subject to home inspection and termite inspection". |
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