ABC's of Selling Florida Real Estate



The Problems Caused by Starting at Too High a Selling Price

then Waiting Too Long to Drop the Price.

  We all want to believe our home is worth more than it really is. It's a natural reaction for those who love their current home even though, for whatever reason, it's time to move. So there's a tendency to price it too high, thinking that if it doesn't sell, you can always "lower the price later." In fact, nothing could be further from the truth.

  "Even if you do manage to get an offer at an "above market" price, your buyer may find it difficult to get a mortgage unless it's an all-cash deal. The mortgage lender will require an appraisal. If comparable sales for the last six months and current market conditions do not support your sales price, the house wonÂ’'t appraise and your deal will fall apart," says one experienced Realtor. "You can always attempt to renegotiate the price, but only if your buyer is willing to listen, but at that point, any sense of trust he had in you, and his own Realtor who suggested that he accept that high price, will be gone," she says. Your home will most likely have to go "back on the market." and start all over again.

  Once your sales contract has fallen through and you home goes back on the market, it is harder to get a good offer. Many Realtors aren't anxious to show a home that has been on and off the market. They may suspect that you'll be just as unreasonable the second time around, demanding a price or terms that just won't fly. Worse, those Realtors who do show your property may bring potential buyers who think that by now you might be getting desperate, so they will make only &qout;low-ball" offers.

  A respected real estate expert and broker says, "when you finally do accept reality and drop your price, your house may have already become old news or stale on the market. Remember that the first people who come to see your home when its first put on the market are going to be Realtors "on tour." If they think your home is over-priced, they won't show it to their prospective buyers. So, if you don't start at a realistic price, your house could take much much longer to sell.

  Listen carefully while your listing agent explains why your home is worth what his or her Comparative Market Analysis (CMA) says it's worth. Ask questions, if you wish, to assure yourself that your Realtor used truly comparable properties in arriving at the value of your home.

  In the end, if you overprice your home upfront, you may actually end up with less than you would have received had you accepted the professional judgment of your Listing Agent.

top of this real estate page
Home Page