When it comes to home pricing, of course you and your Realtor (any great Realtor) want you to receive as much money as possible for your home. That being said, if you have in mind a wildly inflated price for your home a smart Realtor will run the other way rather than market your home if you insist on unrealistic pricing.
A salesperson only interested in using your listing to drum up more business might well take the listing with the full knowledge you won't sell at your wildly high price -- but they might get some spin off business from your listing; perhaps a buyer will call first on your home and the salesperson can sell them something at market value. In the business a wildly high price on a property puts the property into the unpleasant, slang category of being an "overpriced pig."
Why will your overpriced pig never fly? Because even with the very best marketing, even with you receiving an offer from an uneducated buyer, unless that buyer is sitting on a mountain of cash they will not be able to get financing if your home is well above market value. As an aside, anyone I've known with the ability to do cash offers is working with a full service Realtor who would have already advised them on the comparables.
Not only does a buyer have to agree on your price but so also does the lender's appraiser! So even if your buyers LOVE your home, the bank shares no such infatuation. They will say "we'll lend you fair market value and no more." The home inspection also plays into value, but that's another blog!
Realtors often hear, "well, we'll price really high, but someone can always make us an offer." But, guess what? They don't make you an offer, because they don't look at your home. Yours is the home that makes all other comparables look great!
I would invite you to repeat the experiment I've already done. Ask any real estate investor if they use the services of a full service, top rate Realtor. Without exception, the ones who have been most successful will answer you that they absolutely do. So, if we accept this fact, please know that as one such Realtor, my buyers are very savvy about market value.
Seller's I've worked with might tell you that I asked them this question, "do you want to list your home or do you want to sell your home?" Because, unless we enter into another cycle of unprecedented price escalation there is no sense in "testing the market."
In a balanced market overpriced pigs just never take wing. Trust me when I tell you, it will be an exercise in frustration for you to have your home on the market at a much higher than fair market rate. Don't allow yourself to be used by anyone willing to take the listing at that price; because they would not be working in your best interest but only looking after their own side agenda.
By all means, you can price "optimistically" with the willingness to adjust your price if necessary; but don't believe that pigs will ever fly.
A salesperson only interested in using your listing to drum up more business might well take the listing with the full knowledge you won't sell at your wildly high price -- but they might get some spin off business from your listing; perhaps a buyer will call first on your home and the salesperson can sell them something at market value. In the business a wildly high price on a property puts the property into the unpleasant, slang category of being an "overpriced pig."
Why will your overpriced pig never fly? Because even with the very best marketing, even with you receiving an offer from an uneducated buyer, unless that buyer is sitting on a mountain of cash they will not be able to get financing if your home is well above market value. As an aside, anyone I've known with the ability to do cash offers is working with a full service Realtor who would have already advised them on the comparables.
Not only does a buyer have to agree on your price but so also does the lender's appraiser! So even if your buyers LOVE your home, the bank shares no such infatuation. They will say "we'll lend you fair market value and no more." The home inspection also plays into value, but that's another blog!
Realtors often hear, "well, we'll price really high, but someone can always make us an offer." But, guess what? They don't make you an offer, because they don't look at your home. Yours is the home that makes all other comparables look great!
I would invite you to repeat the experiment I've already done. Ask any real estate investor if they use the services of a full service, top rate Realtor. Without exception, the ones who have been most successful will answer you that they absolutely do. So, if we accept this fact, please know that as one such Realtor, my buyers are very savvy about market value.
Seller's I've worked with might tell you that I asked them this question, "do you want to list your home or do you want to sell your home?" Because, unless we enter into another cycle of unprecedented price escalation there is no sense in "testing the market."
In a balanced market overpriced pigs just never take wing. Trust me when I tell you, it will be an exercise in frustration for you to have your home on the market at a much higher than fair market rate. Don't allow yourself to be used by anyone willing to take the listing at that price; because they would not be working in your best interest but only looking after their own side agenda.
By all means, you can price "optimistically" with the willingness to adjust your price if necessary; but don't believe that pigs will ever fly.
