Are there times in situations where I might recommend to my client to overprice his or her house? 😬
Yes, I would suggest, there are two times that I have done that recently.
The first situation was during a bigtime seller's market, like one we have just been through. And, just as in every micro real estate market, there are areas and neighborhoods that buyers seek out...in high demand. There is a true lack of inventory and high demand, homes are moving quickly (low DOM - days on the market) and sell close at or above list price. In this situation, I advised my clients to push the envelope just a little bit to see what the market could bear. It did work. But keep in mind, it’s all about what a ready, willing and able buyer is willing to pay regardless of the market. The true fair market value really is determined by that buyer.
The second situation, where I suggested pricing it over fair market value (overpricing), was when the homeowner was lacking motivation to sell but wanted to "test the market and if it sold, it sold." In this situation, as in every listing appointment I have, I sit down and discuss why they are moving. I discuss their motive or situation which made them want or have to move. In this particular case, this homeowner didn't have to move, wasn't highly motivated and wanted to overprice it. He wall "hell-bent" on testing the market. At this point, I did run a net sheet and agreed with pricing it just a bit above market value with having a little wiggle room. BUT, I did also discuss with them that there was a high likelihood that the home would sit on the market longer and might have price adjustments needing to be done. He was fine with that so we rocked on.
Are there other situations where this might occur? Sure.
All this being said, I do not typically advise my clients to overprice their homes. It’s all about motivation and how quickly you want to sell.
Each situation is different and each client is different.
To sit down and discuss whether now is the time to sell for you or not, reach out to me at 251-709-4331. I’d love to help.
Amy Cuny, Broker - ARK Real Estate