Having been a real estate agent in the St. Louis metropolitan area for nearly two decades, I am able to sum up, in one word, why a home is not selling: PRICE.
There is not a feature of a home that can be changed, updated, removed, etc. which will sell the house as quickly as lowering the price.
Home buyers now have an incredible amount of resources at hand to determine the value of a home. Not only do they likely have their own real estate agent to complete a comparative market analysis (CMA), they can do their own research online. Websites like Zillow have CMA tools and, by completing a short form on my webpage, “I Want to Sell My Home” I will send you a free CMA. An overpriced home is simply not going to fool educated buyers and agents.
Here is an extreme example to prove the point that PRICE is the number one determining factor on the speed at which a home sells: list your house for $1.00 and watch how quickly you will get offers over the asking price. Obviously, I would not recommend listing a house for a dollar but I believe that if you did so and left it open to offers for a week, you would, within that week, receive an offer at the actual fair market value in normal real estate conditions. My belief is that the market determines the value of the home, not your listing price.
There are negative consequences to overpricing a home for sale. Let’s say you list your home for $375,000 but in actuality it is closer to $350,000 in value. Anyone who has a budget of $350K may not find your listing because it is above their search criteria for price. You have missed out on these potential buyers. Houses that sit on the market for an extended time are often perceived as undesirable. Why else would a house be on the market for months?
Additionally, even if you find a buyer at your asking price, the home may not appraise for that amount. Traditional lenders will typically lend funds up to 80% of the appraised amount, not 80% of the contract price. Therefore, the buyer will have to come up with more cash at closing and/or you may have to lower the price.
In the hundreds of closings I have attended, I have never had a seller say that they regretting selling their home at too low of a price.
If you want to discuss selling or buying a home in Chesterfield, Creve Coeur, Ladue, Town and Country, Wildwood, Frontenac, Clayton, University City or anywhere in the St. Louis metro area, feel free to contact me.
Marilyn Salzman, (314) 814-1011Read More