Ask Phyllis!

Pricing To Sell

Dear Phyllis,
Before listing my home I met with two Realtors®. The first told me to price my home at $1,295,000 and expect to sell over the asking price. But he really couldn’t pinpoint how much higher, which made me very uncomfortable. The second Realtor® suggested that I list at $1,495,000 and I should expect to sell close to that number. I hired the second real estate agent and listed at $1,495,000. After two weeks, I got an offer for $1,300,000. That buyer wouldn’t come up and I cancelled my listing. It was so much work getting my home ready for the open houses, and I am now so disappointed. At this point, I am not sure what my next step is. Frustrated

Dear Frustrated,
Some home sellers are pricing too high because they keep hearing how hot our market is. Although, it’s a strong seller’s market, you unfortunately learned that you can still overprice a listing.

In today’s heated seller’s market, it’s difficult for a Realtor® to predict at which price your home will sell. There are so many unknowns that come into play. The majority of offers on most of my listings are written by buyers who have written other offers on other homes and lost the bidding war. Most of these buyers become more aggressive with each offer they make.

In today’s current real estate environment it is nearly impossible to underprice a listing. As long as your well-priced home is fully exposed to the market with open houses and a solid marketing plan, buyers will drive up your asking price.

Sadly you have discovered it’s more important than ever to negotiate your price up and not down. Now is the time for you to regroup. Contact the first real estate agent and have an honest discussion about your concerns. Keep in mind that your listing price of $1,295,000 is an offering. You are under no obligation to accept that offer – even if cash and without any contingencies. Best of luck the second time around

  Phyllis Harb