The real estate myth that can torment you

Jim_Samson

“Don’t believe everything you read.”

That’s wise advice for virtually every part of life, but in the real estate world, it can be the difference between tens of thousands of dollars in your pocket or someone else’s.

And that’s precisely why today I’ll be discussing the most common and consequential real estate myth that could plague you the next time you try to buy or sell…

What you may believe to be conventional wisdom may actually be something that could cost you BIG on that home purchase or property sale.

That’s because it could be this HUGE real estate myth…

MYTH: Price your home higher than what it’s worth

A bit of “advice” I often hear people give each other is for a seller to set the price of his or her home higher than what he or she expects to get for it. The idea being that, like in a normal bargaining process, the price is going to get whittled down to the true target selling price.

But in reality, you are much more likely to end up with a significantly lower selling price than you expected to get in the first place. Consider this:

First, you set the price higher than what you should. This causes prospective buyers to simply pass over your property because it’s out of the right price range.

So then you think, “Well, I can always lower the price.”

Well yes, this is true. However, by the time you realize you need to lower the price, it could have already been too long. Most buyers become very suspicious of a house when it’s been on the market for somewhere around 18-21 days or more.

All of this cumulates and drives the price of the home you’re trying to sell way down.

So by setting the price of your property 5% higher than the price you expected to get, you could wind up receiving 15-20% less!

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