The common mistake which causes many homes to linger on the market is that belief that if it does not go for the asking price immediately, you can attract purchasers later by dropping the price. As a general rule, a reasonably priced house will get a lot more initial attention from potential buyers, and you incur the danger of them never making it to your listing if they locate a better priced home. This tactic may also mean desperate measures later on if the homeowner starts to panic due to timing or monetary constraints.

The appeal to over-price a house with the intent to will sell high is really only possible in a hot housing market, and is still a risky strategy because the market can experience a downturn before you sell. Since the initial 30 days on the market is when a house gets the most attention, having it sit for 3 to 6 months because of over-pricing can put your property in the “stale” basket which many purchasers and real estate agents tend to dismiss. Even in sectors with rising available homes and stable prices, simply drumming up viewings for an over-priced home can still be difficult.

To determine the accurate asking price for your house, consult with professional real estate agents and look at newspaper ads to get an idea of the average price for properties in your area. There is a wealth of data on websites about the housing sector but if you are looking for Brampton property then there is no substitute for a real estate expert. An additional useful statistic is the “average days on the market” that you can determine by determining at what price houses begin to lose momentum and end up at the end of the listings. Also be cautious with Realtors that estimate a lofty list price because they may just be gambling that they will generate a big fee by rapidly selling your house.

One true indication that your house is incorrectly priced for the existing market is lack of scheduled viewings the first few weeks. Real estate agents are not willing to waste their buyer’s valuable time on houses that are out of their price range. It is best to adjust the price rapidly rather than waiting for a potential “lucky break” since potentially lucrative offers may slip through your hands. This is particularly evident with downtown Toronto condos since competition is often fierce and you might be going up against the builder.

Also consider that you are competing with low-priced houses that are in foreclosure or being sold to pay for overdue taxes. A number of these homes are in financial meltdown because the homeowner stuck to an overinflated price and could not sell their property. You should remember that bargain shoppers are also attracted to “fixer-uppers” that can impact the overall area’s average so that over-priced properties have less interest. Smaller property markets such as Barrie real estate can be influenced by overpriced houses if buyers are coming to the region looking for a deal.

Real estate experts have come to understand that the possibility of initiating multiple offers are much greater on a lower priced property than an over-priced one. They have seen clients reluctant to offer less than the listed price, but happy to make counter-offers on low-priced properties that have attracted numerous buyers. Customers like to feel like they are receiving a deal, and real estate professionals realize that homes that hit the market with low-price tags attract more attention than houses who have to lower their price as a consequence of being on the market a few months.

Author Bio: Stefan Hyross writes about the housing market and you may find your Brampton property and downtown Toronto condos on one of the sites. You may also get info on Barrie Ontario real estate and search for houses.

Category: Real Estate
Keywords: real estate, home selling