The importance of pricing your property right in the beginning.
It is extremely important to list your property in line with comparable sales data if you are motivated to sell.
Some reasons why sellers may overprice their property include 1) they want to “test the market” 2) they want to leave room for negotiation. Leaving some room for negotiation can be okay as long as it is not “too” overpriced, you should have it priced at a point where buyers will feel comfortable making an offer.
Some consequences of overpricing include:
Lose prime marketing time: The first few days on market is when the listing is seen the most.
No showings: Buyers may pass on viewing the property if they feel it is overpriced.
Help competition: Other listings that are priced right will seem like a better deal to potential buyers.
Waste money in association fees, taxes, insurance, etc: You will be paying all of these expenses while your property sits on the market.
Lose potential buyers: Buyers who viewed the property in the beginning may have found a different property by the time you reduce your price.
Doesn’t appraise: If the property does go under contract at a price too high, it may not appraise.
Scared buyers: After the property has sat on the market for a while and has had many price reductions, buyers may think there is something wrong with it.
As it's well-known, insurance costs and association fees in Florida have notably risen in recent years. If you initially overprice your property and it remains unsold for months or even years, you end up losing more due to wasted fees, taxes, and insurance.
If you'd like a complimentary comparative market analysis of your property by one of our local agents, please complete the form below.
