Overprice Your North Georgia Mountain Home: Why Not?

The Mountain Life Team Blogger March 24, 2014

Pricing-Your-North-Georgia-Mountain-Home-Correctly-300x197A major home-selling decision arrives right at the start: setting your home’s price. It’s a step that can be decisive for good or for ill. I like to tell my clients that pricing your home correctly is 80% of successful marketing.

But what is the “right” price? We know what it probably isn’t—it’s not the first number that pops into your head, nor is it likely to be The-Price-of-Your-Next-House-Plus-the Cost-of-a-Family-Vacation-in-Tahiti-Plus-the-New-Sportscar-You’ve-Always-Wanted-to-Own. It’s also not a price that will ‘test the market’ (to make sure there hasn’t been an upward spike in demand since the last comparable neighborhood home sold). It is also not the number that you got to have in order to be able to purchase your next home.

Setting a home’s price in the right ballpark can be easier than many people assume. You can get there by a number of different routes, most of them tied to recent sales history:

BUYER APPEAL

Setting a home’s price doesn’t take place in a vacuum: first come the buyers you need to attract. If your property is priced significantly above the market, your ‘market test’ will tell you that only uninformed prospects—or no prospects—are interested in pursuing your offer. An out-of-whack asking price can also be taken as evidence that the seller (you) aren’t really interested in making a deal happen, which will make professionals less likely to present it to qualified buyers. When listing your home for sale in Blue Ridge or Blairsville GA, your agent must do a great job first of not only marketing your home to attract the buyer’s appeal, but equally as important to attract other real estate agents appeal.

AIDING THE COMPETITION

By setting your home’s price significantly above the competition, you do everyone else in the North Georgia Mountain Real Estate area a terrific marketing favor. Even prospective buyers who appreciate your home’s innate qualities may be unable to resist what suddenly looks like a real bargain-basement buy just down the street!

APPRAISAL REALITY CHECK.

Even if you do interest a willing buyer, unless he or she is able to pay cash and this does happen more often than you might think, a likely next step will involve a mortgage lender’s appraisal. Setting a home’s price above any area comparable can mean an appraisal that comes in below the agreed-upon purchase price. Even if that doesn’t kill the sale through a loan denial, the buyer is likely to be penalized through a higher down payment or interest rate— either of which can play taps for your sale.

IT’S ONLY MONEY

Another (and perhaps the most persuasive) reason to right-price your home is monetary. History shows that overpricing generally yields proceeds that are significantly below those set more aggressively right from the start. Its human nature: successive price reductions look like desperation—which invites low-ball offers.

If you are actively debating how to make the best of this spring’s North Georgia Mountain selling season, give me a call today at 706-994-8686. Together we can map out a marketing strategy that works!