5 Ways That Incorrect Pricing Can Cost Thousands of Dollars in the Barre and Montpelier Real Estate Market
- Your home has the best chance of selling for top dollar when it is fresh to the market and priced to be competitive. Letting it sit on the market at a “test” price causes buyer enthusiasm to dwindle.
- Buyers buy after they shop around. In Montpelier and Barre, buyers of real estate spend a lot of time searching for the best values. If your home is priced too high, it makes the other homes on the market look more attractive. That can help sell the competition.
- When an offer has been made and accepted, it will most likely be subject to a bank’s appraisal of value. If it appraises below the contract price, you’ll have a problem because your buyer’s loan to value rate (LTV) might not be satisfactory to the lender. You’ll either end up lowering the price to the appraised value, or the buyer will have to agree to pay more than the appraised value.
- Price is the most critical item that both buyers and real estate agents look to when selecting homes to view. Poor location, floor plans, condition, and decorating can all be cured with the correct, accurate pricing.
- If it’s priced too high, it’s possible that no one will seriously consider the property or even start any negotiations.
- If it’s priced too low, you’ll leave money on the table.
- The more accurately priced the property is, the less likely a buyer is to start negotiation with a “low ball” offer. When priced correctly, asking prices are much more defensible, and often sell for much closer to the asking prices.
- Real estate karma—Realistic sellers attract realistic buyers. Unrealistic sellers attract unrealistic buyers.
Our office has very intimate knowledge of the properties in the Barre and Montpelier real estate market. It’s not uncommon for appraisers to call us for assistance in determining value!