As a real estate broker, I agree that overpricing your home can be disastrous. It is one of the reasons you need to work with someone that knows how to price a property based on comparative homes, and knowledge of the market. Unfortunately, many real estate agents will just agree with a seller on a price in order to obtain a listing, even when they know the price they want to ask is way off.
It’s imperative to ask your agent to do a market analysis before you sign a listing agreement. Ask how well they know the local market, what has sold near you, how long properties were listed before going under contract. Correctly pricing a home to sell at its highest and best offer is something of an art- not everyone is Picasso.
Once the analysis is done, as you said, try to take the emotion out of the decision and listen to the expert. I’ve been in the unenviable position where I recommended a lower price and the sellers refused to list at that price. When that happens I explain the risks up front, and we agree if there is no movement in a week or two, we will reduce the price. In the last three years. I’ve had to reduce a price twice. Most homes in New England continue to sell over asking price due to an incredible inventory shortage. Great post, Ben.
As a real estate broker, I agree that overpricing your home can be disastrous. It is one of the reasons you need to work with someone that knows how to price a property based on comparative homes, and knowledge of the market. Unfortunately, many real estate agents will just agree with a seller on a price in order to obtain a listing, even when they know the price they want to ask is way off.
It’s imperative to ask your agent to do a market analysis before you sign a listing agreement. Ask how well they know the local market, what has sold near you, how long properties were listed before going under contract. Correctly pricing a home to sell at its highest and best offer is something of an art- not everyone is Picasso.
Once the analysis is done, as you said, try to take the emotion out of the decision and listen to the expert. I’ve been in the unenviable position where I recommended a lower price and the sellers refused to list at that price. When that happens I explain the risks up front, and we agree if there is no movement in a week or two, we will reduce the price. In the last three years. I’ve had to reduce a price twice. Most homes in New England continue to sell over asking price due to an incredible inventory shortage. Great post, Ben.