Aug 27, 2010

Homes That Are Overpriced Do Not Sell

You have certainly seen many wonderfully looking houses with the sign 'for sale' right next to them. That is nothing unusual, is it? Unless the sign is there for way too long. Why aren't these homes, in spite of their fabulous look, sold already? Think about it.

You may be partially right if you guess it is because of their not very attractive location. Yes, the house might look absolutely gorgeous but if no important facilities are in close proximity or if its surrounding is not nice, it does not matter how awesome the house looks. Such scenario is not all that common, though. The reason houses do not sell is quite different. Usually these stunning homes, which seemingly do not sell, are simply overpriced.

Buyers, naturally, do not even want to offer on such homes. The seller might be offended by an offer which is way below the requested price and the buyers may be embarassed by offering too little. They simply do not think it would be beneficial for either side. Furthermore, the sellers are expected to realize they are asking too much. Buyers are convinced sellers know what they are doing and would not sell the house for any less money; otherwise, they would have dropped the price already.

My advice to you is, if you are trying to sell your home and nobody has put in an offer so far, even though the property has been on sale for some time, think about whether the price you are willing to sell it for is not unrealistic. One of the simplest way to find out is to ask your realtor or someone who is an expert for your area. Also, if you have almost no showings, no contract in spite of showings or really no offers at all, you are very likely actually overpricing your property. It is understandable that you like and value it, but be realistic, who is going to buy it if it is unreasonably expensive?

People are not that silly. In order to actually sell overpriced homes, their sellers have to lower their price eventually anyway. It is thus smarter to start off with a "normal" price and do not spend long months waiting and worrying that the home will never be sold.

1 comment:

Anonymous said...

Recently in Poland to hear a lot of celebration commemorating the creation of Solidarity. There are many discussions on this subject and some of them are very controversial. I wonder whether in other countries, people know what it is and if they have solidarity on this issue a sentence?

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Matt
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