When playing a guessing game on the price or quantity of something, I usually qualify the guess as being subject to The Price is Right Rules. Simply, The Price is Right Rules is guess the amount being closest to but without going over. The amount of the dinner bill (loser to pay), price of a car, number of jelly beans in a jar or the price of a house that was just listed for sale are all examples of how important it is to be close to the answer, but you can’t go over!
In looking up what some other industry professionals had to say about the danger of over-pricing your home when listing it for sale, there were a few dangers listed in almost all the articles I read – Showings with no offers (or no showings at all), helping to sell the competition, becoming stigmatized from being on the market for an extended period of time, losing the initial New Listing excitement bump, and not having the right Buyers looking at your property.
With the recent passing of Don Pardo I have been hearing about all the work he has done in his illustrious career, from being THE voice of Saturday Night Live to his work on the original The Price is Right. I grew up watching Saturday Night Live and his distinct voice was the way every episode started with G. E. Smith and the Saturday Night Band rocking in the background. I didn’t know that Don Pardo had worked on the original The Price is Right as I grew up with Rod Roddy and Bob Barker. The contestant that is closest to the actual retail price without going over will be the winner. Remember to have your pets spayed and neutered, good bye everybody! What does The Price is Right have to do with over-pricing your home?
One of the things I get asked all the time in regards to Real Estate is “Why isn’t that house sold yet?” My answer is usually the same: PRICE. The realistic asking price of a newly listed home is the most important aspect of whether or not it will sell, either quickly or at all. The Price is Right Rule as it pertains to the listing price of a home is a simple correlation – go over and you lose. You want to be as close to the market value without going over to maximize your chance of winning. Of all the dangers that befall you from over-pricing your home, the biggest danger is you not getting as much money as you could. Possibly not selling your home at all, or having to reduce your price until you have a realistic asking price which could be forced even lower if you start above what the market will bear, after which you are dealing with all the problems that come with over-pricing from the start.
Playing the guessing game with the Price is Right Rules is fun, but don’t gamble when it comes to selling your home. Contact me if you are in need of honest, professional Real Estate services. I look forward to Helping You Home.