No Place Like Home
R E A L E S T A T E L L C
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M a k i n g D r e a m s C o m e T r u e
Office 603-532-8080 Fax 603-532-8081
P.O. Box 613 Jaffrey, NH 03452-0613
P.O. Box 613 Jaffrey, NH 03452-0613
Info@NoPlaceLikeHomeRE.com
www.NoPlaceLikeHomeRE.com
www.NoPlaceLikeHomeRE.com
2008 Member National Association of Realtors, New Hampshire Association of Realtors, Contoocook Valley Board of Realtors.
The material on this site is solely for informational purposes, and no warranties or representations have been made.
Copyright © 2008 No Place Like Home Real Estate LLC. All Rights Reserved.
The material on this site is solely for informational purposes, and no warranties or representations have been made.
Copyright © 2008 No Place Like Home Real Estate LLC. All Rights Reserved.
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OFFICE 603.532.8080 FAX 603.532.8081
1. REDUCES BUYER AND SALES ASSOCIATE ACTIVITY
When a house for sale first comes on the market, active buyers, and the agents who work
for them, take notice and make an assessment of the product's value. It will be compared
to similar properties that have recently sold or are currently for sale. This initial listing
period typically generates the highest level of activity in the real estate community.
If the house does not merit its price tag, this window of opportunity is often lost.
2. POOR ADVERTISING RESPONSE
Time, effort, and resources are wasted on putting together an effective advertising
campaign when the intended audience of buyers compares the value of comparable
properties and decides to 'pass,' instead of 'play' on the overpriced house.
Consequently, the house never gets a second glance.
3. LOSE INTERESTED BUYERS
Buyers who would be qualified and otherwise interested in the home do not even consider
the overpriced home, believing they can't afford it. The houses with similar features priced
competitively are those that make it onto the buyers' 'To See' list.
When a house for sale first comes on the market, active buyers, and the agents who work
for them, take notice and make an assessment of the product's value. It will be compared
to similar properties that have recently sold or are currently for sale. This initial listing
period typically generates the highest level of activity in the real estate community.
If the house does not merit its price tag, this window of opportunity is often lost.
2. POOR ADVERTISING RESPONSE
Time, effort, and resources are wasted on putting together an effective advertising
campaign when the intended audience of buyers compares the value of comparable
properties and decides to 'pass,' instead of 'play' on the overpriced house.
Consequently, the house never gets a second glance.
3. LOSE INTERESTED BUYERS
Buyers who would be qualified and otherwise interested in the home do not even consider
the overpriced home, believing they can't afford it. The houses with similar features priced
competitively are those that make it onto the buyers' 'To See' list.
10 'FATAL' RESULTS
of Overpricing a Home
of Overpricing a Home
4. ATTRACT THE WRONG PROSPECTS
Buyers and their agents 'search' for prospective properties using price ranges. When the overpriced house shows up in
the wrong price range, it has attracted the wrong buyer prospects and it will appear deficient compared to its competition.
5. DISCOURAGE OR ELIMINATES OFFERS
When unrealistic expectations result in an overpriced house, offers are effectively discouraged or eliminated. Offers that
are produced are usually low in comparison to the 'list' price because informed buyers are aware of the true value of
the property, especially if they are working with a real estate professional.
6. MAY LEAD TO MORTGAGE REJECTION
Remember that a house must be 'sold' three times: First to the Broker, next to the Buyer, and finally to the Appraiser.
Even if a buyer is willing to pay the price of an overpriced house, chances are that the appraiser, hired by the lender,
will not be able to justify the inflated price, and the loan will not be approved.
7. HELP SELL THE COMPETITION
When a listing price has been decided upon, you have effectively also decided whether you or your competition will
be the winner. Your price choice determines whose house will sell - yours or your competition's.
8. LISTING GETS 'STALE'
If an unsold property remains on the market for an extended period of time, buyers and other agents become accustomed
to seeing the same house for sale and the listing becomes 'stale.' They may incorrectly believe that the property is in some
way deficient. This may also encourage buyers to make inordinately low offers, assuming that the owner is becoming
desperate to sell.
9. PRICE REDUCTIONS SEND THE WRONG MESSAGE
When a house is priced competitively, there should be no need for price reductions, unless the seller so desires.
However, if a seller has overpriced the home, a price adjustment may be a signal to prospective buyers that further price
reductions are coming or the house is deficient.
10. TIME IS MONEY
Since the 'clock starts ticking' the minute that a new listing becomes available, proper pricing is crucial. An unnecessary
delay in offers, and consequently in closing, costs the seller money as taxes, insurance, and interest are prorated by the
day. Remember, the initial listing period is the best time to produce effective results. Market data shows that
houses that sell quickly sell for a greater percentage of the list price than those that sell after a lengthy listing period.
Buyers and their agents 'search' for prospective properties using price ranges. When the overpriced house shows up in
the wrong price range, it has attracted the wrong buyer prospects and it will appear deficient compared to its competition.
5. DISCOURAGE OR ELIMINATES OFFERS
When unrealistic expectations result in an overpriced house, offers are effectively discouraged or eliminated. Offers that
are produced are usually low in comparison to the 'list' price because informed buyers are aware of the true value of
the property, especially if they are working with a real estate professional.
6. MAY LEAD TO MORTGAGE REJECTION
Remember that a house must be 'sold' three times: First to the Broker, next to the Buyer, and finally to the Appraiser.
Even if a buyer is willing to pay the price of an overpriced house, chances are that the appraiser, hired by the lender,
will not be able to justify the inflated price, and the loan will not be approved.
7. HELP SELL THE COMPETITION
When a listing price has been decided upon, you have effectively also decided whether you or your competition will
be the winner. Your price choice determines whose house will sell - yours or your competition's.
8. LISTING GETS 'STALE'
If an unsold property remains on the market for an extended period of time, buyers and other agents become accustomed
to seeing the same house for sale and the listing becomes 'stale.' They may incorrectly believe that the property is in some
way deficient. This may also encourage buyers to make inordinately low offers, assuming that the owner is becoming
desperate to sell.
9. PRICE REDUCTIONS SEND THE WRONG MESSAGE
When a house is priced competitively, there should be no need for price reductions, unless the seller so desires.
However, if a seller has overpriced the home, a price adjustment may be a signal to prospective buyers that further price
reductions are coming or the house is deficient.
10. TIME IS MONEY
Since the 'clock starts ticking' the minute that a new listing becomes available, proper pricing is crucial. An unnecessary
delay in offers, and consequently in closing, costs the seller money as taxes, insurance, and interest are prorated by the
day. Remember, the initial listing period is the best time to produce effective results. Market data shows that
houses that sell quickly sell for a greater percentage of the list price than those that sell after a lengthy listing period.
Your No Place Like Home Real Estate agent
can provide you with the information necessary to help you price your house competitively.
can provide you with the information necessary to help you price your house competitively.