6 Bad Reasons Sellers Use for Not Reducing the Price on Their Overpriced House
It might seem like a contradiction, but the best way to sell your house for the highest price possible is to list it for a little less than it’s actually worth. But a lot of sellers have a tough time taking that advice, and decide to list their house for much more than it’s worth.
While their well-priced competition sells quickly — and often for over asking price — stubborn sellers cling to their price and linger on the market for weeks, or even months. No matter how many times their agent suggests reducing the price, they always seem to have a reason why they shouldn’t.
To help you avoid making a mistake that can cost you tons of time and money, let’s take a look at 6 common (but bad) reasons sellers give their real estate agent for not wanting to reduce the price of their house:
You can substitute the word neighbor with friend, family member, barber, co-worker, or any other type of person you know, but it won’t change the fact that just because someone you know said your house is priced well, it doesn’t mean it’s true.
People are often just being polite and supportive when they make an off-handed comment that your house should sell quickly. It isn’t meant to be taken literally and used as your rationale for sticking to your guns on price.
It’s easy to feel like every other seller out there is under-cutting your price just to get their house sold quickly. But there’s no way everyone else on the market is just so desperate, or easily convinced by their agent to “give” their house away. They’re just priced well based upon the sales prices of other recently sold houses, as opposed to trying to get way more than any other similar house has sold for.
Historically home values do always go up over time. But that typically takes longer than most peoples’ houses are on the market. So, unless you’re planning on holding onto your house for a few more years, this isn’t a good argument for not reducing your price.
(And this applies even in a hot market where houses are selling quickly and over asking price. If yours isn’t selling in a market where prices are going bonkers, your price is bonkers.)
Building in room to negotiate is a self-fulfilling prophecy. Ironically, the more wiggle room you build into your price, the more you’ll eventually have to wiggle on price! If you price your house too high, it’s going to sit on the market longer. The longer your house is on the market, the more buyers will feel free to come in with lower offers… which is still better than all of the buyers who won’t even bother to write up an offer if they feel your price is way too high.
If you find yourself saying that you’re waiting for the elusive “right buyer” to eventually come along, the chances are you’ve already let several other “right buyers” slip through your fingers who chose to buy another house that was priced more appropriately.
Buyers are armed with market data and won’t be fooled by a price that’s more fantasy than reality, no matter how much they love your house.
Agents show their buyers many houses, and (for the most part) each buyer they work with only ends up buying one of them. So they’re showing a lot more houses that their clients don’t buy, than they do buy. So, rest assured that they’d love for your house to be the one their buyers want. It’s not like they’re walking around trying to find things to bash about your house, or are failing to point out custom built-in cabinets that you think make or break the sale.
But what they’re sure to point out — no matter how much they like your house, or how perfect it is for their client — is when your price is way too high for what it is.
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