We Just Need The Right Buyer
“We just need to find the right buyer to sell our home for a great price.” Another misconception when it comes to the sale of a home. I am sure if I waited long enough dating a super model would be easy for me too. Fat chance!
This myth is similar to #1, but the emphasis is on the individuals considering your home instead of time. But just like more time will not encourage higher offers, finding the one-in-a-thousand buyer that will overlook the advice of his or her Realtor and ignore the realities of the market is extremely unlikely.
Buyers do not tend to break very far from the group, and for good reason. The market is what it is because of supply and demand, of all the available houses and all the possible buyers and all the transactions taking place. For a purchaser to go far outside of the norm and buy a home for far above market value is unusual because it is not a sound financial decision.
Another thing to consider about holding out for an individual buyer is that the only kind of buyer that can buy a home that is priced far too high is a cash buyer. Lenders verify the market value of every home they lend money on to ensure that the bank is protected financially. Even if a buyer is foolish enough to try and buy an overpriced house, there is a high chance that the lender will deny the loan due to the price. This will be due to a low appraisal value on the property.
We Need to Price Our Home With More Negotiating Room
Needing to price a home with significant “negotiating room” is a very common pricing myth among sellers.
Negotiation is an essential part of the sales process; there is not denying that. Your Realtor should be prepared to negotiate on your behalf to help you get what you want out of the sale, and to keep you from being taken advantage of. But pricing a home excessively high is not necessary to create an opportunity to negotiate and reach a middle ground. Yes, you can expect buyers to make an offer below your original price in many instances. Buyers will expect to have to negotiate up. But the negotiating room does not have to be substantial.
Trying to price to create a lot of negotiating room will result in you never getting the chance to settle in the first place. When a home is priced too high, it will be avoided by buyers and their agents. They will all be waiting for the price to go down to something reasonable. If you wait very long, you will run into the problem of buyers thinking something is wrong with your house.
Talk to your real estate agent about how to price your home and about what will happen with negotiations. Your Realtor can help you understand what price will be competitive for your home, and will help you decide on the minimum offer you will accept. Then your agent will list the home at slightly higher that your lowest acceptable offer.
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