Q & A: My friends home is overpriced. Will it sell?

QUESTIONS & ANSWERS:

Q: My friend is selling her home but the list price seems incredibly high. Will she be able to sell?"

Great question!  

So often we see homes listed for sale and we think to ourselves, are those sellers out of their minds?!?  They’ll never get what they’re asking!

A home owner can list their home for sale for any price that they would like, reasonable or not.  Unfortunately what they may not realize is that when a home sits on the market for more than a few weeks without sincere interest and offers, it is a sign that something needs to be adjusted and in this case, all signs would point to a reasonable price adjustment.

When you work with an experienced professional, they will help you find the price where you will attract the most buyers and also maximize your profits.  By listing high, you create a few issues.

1. You will turn buyers off and they may not come back for a second look, even with a price adjustment.

2. You may be setting yourself up for issues further down the road.  Ultimately a seller can list their home for any price but if the property is being financed and the buyer needs a mortgage than the home will also need to appraise for the agreed upon price.  A successful appraisal requires solid sold comps that support your agreed upon price.  Without that supporting data, the buyers loan will not be approved.  This means lost time and money and unexpected frustrations.

It is important that your friend is aware that a home is only worth what a buyer is willing to pay and what a lender is willing to lend.  

I wish her the best!

 

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