Antrim Group Real Estate Services of Fort Wayne

Pricing Your Home To Net The Most At Closing: Why trying it out at the wrong (too high) price is a fatal mistake

Here's why: As a real estate professional, I can determine pretty closely what your property is worth on the open market. I will already try to push the value for listing by about 5% above that (realtors usually like to sell property at 95% of list price or better...  another little secret for you). If I determine that your house is really worth around $200,000., then somewhere between $200k and $210k would be a great list price. Now, I can already hear what you're thinking...  "try for a little more, right?" Wrong.  If the actual value is somewhere around $200k, we list between $200k and $210k.  Why not $225k or $245? Why leave money on the table, right?

Wrong. The homeowner winds up angry and very unsatisfied with the realtor for constantly nagging to adjust the price. "Why haven't you brought me any buyers?"you ask. Now that the listing has been on the market for 4 months of the peak selling season, and with only incremental reductions of $1000 here and there, the listing has a stale smell that repels buyers. It's time for decisive action, so you slash the list price to a fire-sale bargain price of $205k. I hear you again. "That's a $20k discount I'm offering, somebody better be trilled with this!!" you demand. Sadly, your home has completely missed out on the "new listing buzz" it could have had long ago. Along comes a buyer who sees your new $205k price, and he knows it has been on the market for 6 months. He knows he has some pretty sweet negotiating leverage with you at this point. With the smell of your desperation in the air, he makes an offer of $190k. You're indignant. "That's a $35k price drop!"  You begrudgingly sell to him for $198k because you have already relocated for your job, or missed out on purchasing that house you were hoping to sell this one in order to buy.