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Today, I want to talk about a topic that comes up frequently: pricing.
Many home sellers think they can’t earn the listing price for their home. Although it varies by neighborhood, the difference between the offer price and listing price is not nearly as big as you might think. For instance, they overwhelmingly think they’ll earn 10% less than the initial asking price. When looking at the figures, we actually see the list-to-sale price ratio closer to 2% or 3%. It’s a tight number. Oftentimes, a home in excellent condition can earn the full listing price.
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By overpricing your property, you create low-ball offers.
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Buyers like to do what we call a split-the-difference negotiation. If you have a home they admire that’s $10,000 over, buyers will try to split the difference with an offer $10,000 less. By overpricing your property, you create low-ball offers.
If you have a home priced accurately, buyers don’t mind paying the full price! It’s a win-win. That’s why it’s so important to avoid the split-the-difference negotiation altogether by pricing your home correctly.
If you’re thinking about buying or selling a Delaware home, give me a call or send me an email! I’d be happy to serve your local real estate needs and answer any questions you might have.
