Often times sellers say, ”I’m not in a rush to sell, “or “I can always come down in price.” There is a psychology to real estate, and neither of these two statements are solid plans. Most homeowners like their homes and easily overlook the flaws. Having lived there, sellers tend to overlook the poor floor plan, peeling paint, outdated kitchens, etc. They are used to the flaws so they don’t think about them as being negative factors. In a seller’s market, these flaws are easy to overlook, but in a buyer’s market, correct pricing is essential. Salem Oregon area homes that have been on the market for a while can be considered flawed by a potential buyer, regardless if that is true or not.

Consequences of Overpricing

• Agents will not show the home to their clients. Agents don’t want to waste their time showing a home that they won’t sell. Remember they only get paid if they sell a home.
• The home will sit on the market and actually help to sell other homes in the area by making them look like a bargain.
• It tells buyers that you are not motivated to sell and will probably not negotiate easily.
• The home will sit on the market and buyers will feel there is something wrong with it.
• Sellers get stressed keeping the house clean and finding things to do while buyers look. Only to have no offers.
• Sellers get frustrated and anxious, the price gets dropped too low and the home sells for a lower price than comparable homes.
• The house may not appraise for the asking price and the buyer may terminate the contract.

Determining the price of a home

Some home sellers believe that if you just market the property enough then someone will come and by it. While marketing is very important, it is not one of the top reasons that a home will sell. Salem Oregon real estate agents can market a home for a seller and send themselves into bankruptcy in the process. Knowing the top factors in the sale of a home is important, so that a realistic price can be set for a home.

Factors in the Sale of a Home

1. The condition of the home
2. Price
3. Terms and availability
4. Conditions of the real estate market
5. Conditions of the financial market
6. Promotion and marketing

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