It is not unusual for a seller to want to get as much money as they can for their home by pricing their home high. Often, against the advice of their Realtor. There are many reasons the seller may do this.
Beware Overpricing Your Home.
Understandably, sellers want to maximize the value of their home. Perhaps, they want money for the down payment on the next house, that long-wanted vacation, or money to reduce debt. But, Realtors know homes only sell at a price a buyer is willing to pay and a seller is willing to accept.
Additionally, there are many variables that go into pricing a home. If you’ve chosen a Realtor who knows your area well, you can trust that they will perform a thorough analysis of the market. Consequently, they know how to find the price that gets a buyer to lay down their money.
What About Under-pricing Your Home?
Especially relevant, a Realtor may suggest you price your home below the competition. In this instance, the goal is to get the seller multiple offers to drive up the price to market value, sometimes, even higher, to help their buyer get more money.
Therefore, your Realtor will consider, among other variables, the location and condition of your home. A home with a great location in good condition, relative to similar homes on the market, will likely generate multiple offers. Your Realtor will help you show the home to outshine competition and attract prospective buyers’ money.
So, when you get the offer at the money you want, accept it. You are not obligated to accept an offer at the asking price.
In closing, work closely with a Realtor who knows your market, and there is little danger in under-pricing a home. The danger lies in pricing it too high and selecting your agent solely on price.
