What happens when you overprice your Las Vegas home?When I list a home, I do extensive market analysis on its worth. I send all my findings to the sellers. And then I let them pick the listing price
The Dangerous Effects Of Overpricing Your Home
What happens when you overprice your Las Vegas home?
When I list a home, I do extensive market analysis on its worth. I send all my findings to the sellers. And then I let them pick the listing price out of the gate. I don't want them to think I made them leave money on the table.
Here's what happens when sellers are realistic:
1. Overpricing Costs Time on the Market. These days Las Vegas home buyers are smart. They have access to more data than they ever had before. So they pretty much know what the houses in that neighborhood should sell for.
So they ignore your listing. I tell my sellers if no one looks at the house in the first seven days, the price is too high. The we have a frank talk about lowering it.
Here is your danger zone. Your DOM score goes up. What is DOM? It's days on the market, a clock that starts the minute your home hits the MLS. According to the Greater Las Vegas Association of Realtors, 80 percent of all listed homes sell in the first 60 days. Once you get to day 61, your house becomes stigmatized. People think two things: either something is wrong with the house OR the seller is clueless about the true value of the home.
It may take longer to get an initial offer. And the offer may be a low-ball one.
My advice: Start with any price you want. But do what it takes to sell the home in 60 days!
2. Overpricing Limits the Potential Buyer Pool
Here in Las Vegas, most sellers want buyers to submit a pre-approval letter with their offers. (They got stung during our past real estate apocalypse, my term.) This means the buyers have gone through the gauntlet called underwriting. This can take as long as two weeks. Sellers like pre-approved buyers because it takes the financial risk away...as long as the buyers keep their jobs and don't buy new cars!
Las Vegas buyers with pre-approval letters know exactly how much house they can afford. Overpricing the home means fewer people will even check out your home because it is (artificially) above their price range.
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