Is the Price Right? Or is it Condition or Location that is Drives Away Potential Homebuyers?
Price, Location and Condition are what determine if a home sells.
Often buyers believe if a home does not sell, there must be something wrong with the home. This is true in a market that is moving, there is something wrong when a well maintained attractive home in a desirable location does not sell, what is wrong is the price. Homes that are overpriced often never sell at all. Why? Because they simply do not receive offers!
Why Don’t Home Buyers Make Offers on Overpriced Listings?
- Buyers don’t want to offend the seller. It’s insulting to the seller and embarrassing for the buyer.
- Buyers erroneously believe that the seller knows the home is overpriced. They believe that if a seller would be willing to sell for less, the seller would simply lower her price.
- Buyers also assume that the seller must have turned down offers from other buyers because surely someone, somewhere along the line, had offered a reasonable price to the seller. But many times, there are no offers at all.
How Do Buyers Find Overpriced Listing?
The easiest way is to ask your Realtor, average days on the market (DOM) is a good indicator if a home is overpriced. Your neighbourhood Realtor can review the current home inventory with you and provide you with details of homes that have been on the market longer than average. MLS systems typically have a system to calculate days on market.
Cheryl Kelly
Sales Representative with Signature Service GMAC Real Estate
www.cherylkelly.ca
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