Selling your home in Port St Lucie
So you have decided on selling your home in Port St Lucie and you select a price that is above the current market. So what happens when an overpriced home hits the Port St Lucie real estate? There are many problems associated with pricing your home too high. However, the end result of overpricing is that valuable equity silently slips away before the sellers even know what’s happening. Contrary to what many home sellers think, overpricing a home does not lead to a higher sale price. It is the exact opposite. Overpriced homes attracted the wrong buyers, take longer to sell and end up costing sellers a lot of time and money.
Time is not on the sellers side
What many sellers fail to understand is that in Real Estate time is your enemy! To illustrate what happens when an overpriced home comes onto the market, imagine a tire with the smallest possible pin hole. You won’t likely realize there’s a problem until the tire is noticeably flatter. The number one question that every buyer asks their agent when becoming serious about a property is “how long has this home been on the market?” When the days on market become higher than the norm buyers will start to ask themselves what is wrong with this home? Why has someone else not made an offer? Buyers will feel like they can negotiate with someone who’s home has been on the market for months far more than someone who just listed. This is just human nature and a very common thought process.
You attract the wrong buyers
Buyers almost always shop by price. When you overprice your home it shows up in search results with superior homes and much strong competition. These homes are usually larger, in a more desirable location, with better upgrades and features. Agents can quickly spot an overpriced home and will show your home to buyers only with the intent to help them sell other well priced listings in the buyers budget. Selling your home in Port St Lucie is difficult enough when the home is priced right. Much less when it is too high for the market.
If you are lucky enough to find a buyer that happens to think your place is perfect and they are willing to pay what you are asking, you still have to deal with the appraiser. All banks require an appraisal of any property they loan out money for, and yours will be no exception. Your local appraiser does not care how perfect you think your home is, nor how perfect a fit it is for this particular buyer. Instead, appraisers are only interested in the latest sales data within a few short miles of the home and he or she will appraise your property accordingly.
Sometimes the agent is to blame
When selling, one of the first things I that I promise prospective clients, is that I won’t take a listing just for the sake of taking a listing. If I don’t think I can help someone achieve their real estate goals, I’m very honest about it. I think the general public has a hard time understanding why any agent would take an overpriced listing. However, it’s pretty simple:
Listings are essentially an agent’s “inventory”, which they then use to market their business. An agent who doesn’t want to miss out on the opportunity to list a house, may let the seller believe their home is worth more than it actually is worth. I tend to believe this is more about the agent being more timid than dishonest. Regardless, who doesn’t like the sound of MORE money? The sad part is the agent is supposed to be the expert in this situation. When an agent says the house is worth X amount, it must be true. Therefore, the agent recommending the highest price must simply have the right mojo or the best trick to getting a high price. Right? Nope. A skilled agent will certainly get top dollar for his or her clients, but when something sounds too good to be true…well, it usually is just that.
You see, when an agent suggests a high price, the seller’s confirmation bias naturally kicks in, and a business relationship is founded on misinformation. If your agent overprices your listing, you can expect that price reduction phone call to occur within a few weeks, but not until the home’s marketability suffers a huge hit. Imagine a sprinter who isn’t ready when the starter pistol is fired. They are at a huge disadvantage right? The same holds true for overpriced homes: their performance suffers, they become “stale listings” and usually go through several price reductions and some even expire in the MLS because they do not sell.
For this reason, I strongly suggest that when selling your home in Port St Lucie, choose an agent with several years of experience and at least a hundred or so sales under their belt to represent them as the listing agent. A sellers hard earned equity is just too valuable to trust with new or inexperienced agents. In addition, sellers need their home advertised and marketed correctly. New agents usually do not have the knowledge or financial resources to market a listings in today’s competitive market place.
Select the right agent to sell your home
When interviewing real estate agents for selling your home in Port St Lucie or anywhere in South Florida, it’s very important you don’t choose your agent based on who suggests the highest list price. Instead, look for an agent who can show you the latest sales data by presenting you with a detailed Comparative Market Analysis of your property. The comparable sales (“Comps”) should be of homes within one or two miles of your home (“subject property”), close in square footage, like condition and similar upgrades. The agent should make adjustment for Comps that have different features. For example, your home does not have a pool but the comparable does. The agent should adjust the price down on the comparable to show what your home would most like sell for since it does not have a pool. Another example could be that you recently remodeled your 25 year old home with a new kitchen, bathrooms, windows, paint and flooring. But a comparable used in the CMA was the same year built but no updating. So the sales price of the comparable should be raised to show what it should have sold for with your improvements. Which is usually 70 to 90% of your actual costs depending on the upgrade. Selling your home in Port St Lucie is not an easy as your may think and not all improvement get you larger returns.
Take a look at my blog post on How To Sell Your Home in Port St Lucie Florida or my post Richard featured in Top Agent Magazine as one of Florida’s Top Agents! Port St Lucie Fl Real Estate EXPERT to find out more about me and the do to get homes sold in the Port St Lucie Fl real estate market.
Home sellers should select an agent based on their experience, track record of sales, marketing, local knowledge and customer reviews. If you are considering selling your home in Port St Lucie, please call RICHARD MCKINNEY & THE RESULTS TEAM OR ATLANTIC SHORES REALTY EXPERTISE AT 772.370.8631
GET A FREE, INSTANT PRICE EVALUATION BY USING MY VALUATION TOOL BELOW.
Other Home Sale and Pricing Resources:
- How to get top dollar for the sale of your home by HGTV.com.
- 5 No-Cost Tricks to Sell Your Home Faster | DaveRamsey.com
These additional resources will help you further understand how overpricing a home will cause you to sell it for less than you would have if your priced it properly right from the very start. Selling home Port St Lucie.