It May be a Sellers’ Market, but you still need to Price it Right

As prices continue to climb on Oahu, some sellers think they can over price their property.

That is a bad mistake for a few reasons.

  1. Buyers looking at homes priced similar to yours are comparing it to larger more upgraded properties.
  2. Buyers looking for a home similar to yours they will pick one of the lower priced homes.
  3. You will stay on the market longer and have to pay carrying costs during that period of time.
  4. If a buyer gives you an offer close to asking price, the appraisal will most likely come in low and will either lose that buyer or have to drop your price to where it should have been to begin with.
  5. Many buyers and real estate agents will just skip your home all together, if they feel you are not reasonable with your price. They don’t want to waste their time.

Why would a real estate agent take your listing if it is overpriced?

  1. They are inexperienced and desperate for a listing.
  2. They are inexperienced and simply do not how to price a home.
  3. They are doing what is known as buying the listing. They offer to list it for more than the other agents in the area, to get the listing. They will then try to get you to lower the price later to the correct price when it does not sell.
  4. They have no listings and they want to use your home to pick up buyers.

What are some of the reasons sellers over price their home?

  1. Amateur experts (family, friends, and neighbors) have convinced them it is worth more than it really is worth.
  2. They need to get more to get out whole. They may owe on the mortgage than the home is really worth.
  3. They don’t really need to sell and want to test the market.
  4. They are delusional and believe for some reason their home is worth so much more than all others in their area.
  5. They heard it was a seller’s market and may be over estimating what that means.
  6. The seller is a slow real estate agent that is not serious about selling their home. They want something they can use to pick up buyers.

Yes it is a seller’s market in many areas, like here on Oahu. No, you will not be able to sell your home for more than it is worth. Beware of real estate agents who are willing to list your home for more than other real estate agents in your area. They may not have your best interests in mind.

If you are looking to sell your home on Oahu, please give me a call. I would be honored to assist you. If you are looking to sell your home in another area and you do not have a good real estate agent , I can help you screen potential agents.

About Randy Prothero

Randy works with both buyers and sellers and takes extreme pride in having placed many first time home buyers in homes. He is an area expert for residential real estate and one of a small handful of agents who specialize in working with VA / Military clients. His services are normally free to buyers.

Contact Randy to start the process of buying or selling a home. He will make it a pleasant experience.

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