10 Dangers of an Overpriced Listing
Why buyers do not make offers on over-priced listings
When sellers wonder why they have not received an offer on their home, they should first look at the asking price - it's probably too high. But, "buyers can always make an offer, right?" Of course they can, but serious buyers usually don't make an offer on a home that's priced too high.
Facts About For Sale By Owner (FSBO)
Saving Commission Most owners try to sell their own home in order to save the broker commission. The fact is that buyers know this and usually make an offer based on this, deducting the amount of commission you would have paid. You actually save nothing but gain headaches.
Underpricing Most owners are not familiar with the rapidly changing real estate market and the characteristics of supply and demand for a particular type of house. This could result in underpricing and by the time all costs and expenses are paid, you could net considerably less that if the sale were handled by a broker.
Justifying The Sale Price Most buying prospects do not make buying decisions until they feel the selling price is right and justified. Rarely does an owner have a record of sales of closely comparable homes in a general area as one justification for the selling price. The broker has access to market date that can be used for this purpose.
Qualifying A Prospect Most owners are not experienced in qualifying buyers from all aspects, including financial ability and qualifications of purchaser to buy the house. This could result in a contract with a buyer that can not secure a mortgage, thus losing valuable time and often expense and having to start all over again.
Safety The "For Sale By Owner" sign in the yard is an open invitation for anyone to ask to see your home. This could result in an undesirable person in your home when the wife or children are alone. This could pose a dangerous situation. There have been instances when thieves have posed as prospective buyers only to see what might be of value in the home. A real estate professional will make sure that the people he brings through are legitimate home buyers.
Advertising Exposure Most owners selling their own property are advertising only one home, their own. The broker is advertising many homes by comparison. Through a brokers advertising, a prospect may call about one house and be channeled to one that best fits their needs, yours. Brokers also have the access of Multiple Listing Service (over 100 offices) that an owner does not. This provides more access to the buying public.
Negotiations A buyer may be reluctant to discuss some matters directly with an owner because of personal involvement in the property. A sale could be lost and also the objections that a prospect may have go left unsaid. These objections are vital in order for the seller to know what prospects think about the house. Without these comments, corrections to the property may not be made and more prospects and a possible sale could be lost. A broker acts as an impersonal go between for such negotiations. He is much better equipped to handle objections and questions and can relay these points to the owner.
This FREE advice is provided to by: RIXEY REAL ESTATE AGENCY