The Dangers of Pricing Your Home to High

One of the most important factors that determine the speed, at which the home buying and selling process happens, is the price of the property. If the price is too high, then the property will be in the unsold state for a long period of time, especially in this economy.

 

Hence pricing the house correctly is the most important piece of the home selling process.

 

While looking for a real estate agent to market and sell your home, one has to be careful in selecting a real estate agent who quotes an exorbitant sales price for the property. Just to impress the seller and secure the listing, some agents will quote an unrealistically high price. But in reality the market price may be 70% of the price quoted by the real estate agent… they plan to beat you up later.

 

By quoting a higher sales price for the home, it will remain unsold and eventually the seller will abandon the agent and then move on to another agent ~ every day there are more “expired listings” than “sold listings”. Once your home listing has expired, (not sold with the current agent during their listing period) the property has “market age” and your golden opportunity to sell may have passed. In addition, if the “selling season” has passed, the seller has now got to get very aggressive with the price to get “new activity” and to get agents that have shown the property previously interested again.

 

Past data reveals that the sellers who don’t offer their property at a realistic price the first time, often end up selling the house at much lower rates.

 

It’s very important for the seller to look for an experienced real estate agent who knows the locality and property prices in the neighborhood. An agent, who doesn’t have the knowledge regarding the prevailing real estate prices, will not be able to advice the seller correctly.

 

I always recommend interviewing three agents unless you have great confidence in the agent you’re about to hire.

 

To find experienced agents to interview, look at the online business listings that list the real estate agents in the region… Do a Google search for “Denver Realtors” or “Dallas Real Estate Agents”, etc..These listings will generally provide information regarding the quality of services provided by them in terms of the rating provided by past customers of the online business directory.

 

By taking references from several sources, sellers can arrive at a list of top three agents in the locality and then start the discussions with all of them. If these agents are on top of their game, the selling price (recommended listing price) quoted by them will be very similar.

 

Author Jeff Hammerberg is the Founding CEO of www.GayRealEstate.com ~ Free Instant Access to the Nation’s Top Gay, Lesbian and Gay Friendly Realtors Coast-to-Coast.