Thanks to Kris Wales for the following post. Pricing your home correctly is the most important step you can take to insure a timely sale. Although this article was written for Kris's market in Michigan, it is equally appropriate for the Jackson Metro market.
Pat Starnes, McIntosh and Assoc., Inc.
**What a difference a year makes - or perhaps not so much of a difference. I wrote this article a year ago and as I re-read it this morning I realized how much the words still hold true in our real estate market. Perhaps even more so.**
Mr. or Ms. Seller: Yes, you do have to sell the asking price for your home 3 times
or you run the risk of the below scenario happening to you, especially in Macomb
1) You have to sell your price to attract a buyers agent. If you overprice
the home I can guarantee that an agent working on behalf of the buyer
will put it to the bottom of the list of homes to show their client.
Buyers agents in Macomb County have more homes available to
them and their clients to view than we've had in recent years.
The agents in Michigan are typically weeding through close to
100 homes in some instances that meet their clients criteria.
If you overprice your home from the start the agents will not consider
your home for their clients. It is that simple. Please don't make
the mistake of thinking that your home will be shown if it is overpriced,
and that buyers and their agents can read your mind about "Just
bring me an offer - I'm negotiable." Even if you ask your agent
to note that in his/her remarks the likelihood of a buyers agent
seeing that is next to nothing. We won't even get that far because
we won't be pulling up your full listing information if it is priced too
high to begin with.
2) You have to sell your price to the buyer. Buyers are savvy and
educated. The typical buyer has already done their homework
prior to engaging a real estate agent on their own behalf.
They know the real estate market and the general values of homes
in the neighborhoods they are interested in. They don't want to
become involved with an overpriced home and lengthy negotiations
with a seller. Why not? Because the home down the street is
going to be very similar and priced well. They don't have to
consider your home. One more thing to consider: A buyer does
not want to insult you with what you may think is a low offer.
Most buyers I work with will ask me "Will this insult the seller?"
Buyers aren't your enemy - They want to work with you. They
also don't want to be dragged into a potential "left with bad
3) You have to sell your price to an appraiser. Let's say you do
receive an offer on your overpriced home. The next step in the
purchase process is for your buyer and their mortgage representative
to start working their way through that obtaining the loan. An appraiser
will be hired by the mortgage lender. He or she will study comparable
sales for your home, neighborhood, square footage, recently sold
prices, etc. When the appraiser realizes that your home is overpriced
the purchase agreement that you thought you had on your home will
almost certainly be "dead". Why? The lender of the loan will not loan
money to a buyer on a home that is not worth the asked for amount
by that buyer. Unless the buyer is willing to come up with the cash
to make up the difference between the appraised amount and your
agreed upon purchase amount you will now have your home back on
the market. The $30,000 you put into your basement? It isn't worth
$30,000 to the appraisor nor the mortgage lender no matter how much
you wish it to be true.
When the real estate agent or broker you hire advises you on the real estate market
and the changing home values please listen. Please ask questions. Please understand
that agents and brokers in Macomb County are giving you the advice for a reason.
We've seen the dangers of overpricing homes first hand and on a daily basis. We want
to work with you and for you.
Price your home to sell 3 times: To a buyers agent, to the buyer, and to the appraiser.
If you would like advice on the market value of your home please don't hesitate to
contact me either via email or phone. I would be happy to discuss with you your home
and needs in a non-pressured atmosphere.
Kris Wales - RE/MAX Advantage 1, Inc. Search Michigan homes for sale
Chesterfield Township - Macomb County Michigan
586-840-1876 (direct line)
©2007 Kris Wales - Macomb County MI real estate
Written and Published by Pat Starnes REALTOR
Pat specializes in Residential and New Home Sales
Primary Service Area:
Brandon, Pearl, Ridgeland, Flowood and the Ross Barnett Reservoir area
Pat Starnes, Broker Associate
Front Gate Real Estate, 6700 Old Canton Rd., Suite C
Ridgeland, MS 39157
601-278-4513 - Cell
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