You Want How Much for Your Home? Or, Why the Buyer Won’t Overpay!
Are you trying to sell your home? Did you refuse to listen to your agent when they told you the fair market value of your home? Are you wondering why your home is languishing on the market? Did the appraisal come in lower than the purchase price?
All of these problems can be avoided by pricing a home properly.
A seller and a buyer are naturally at odds when it comes to selling and buying a home. The seller wants as much as possible for the property, and the buyer wants to pay as little as possible.
If a home is overpriced, the home may languish on the market until it becomes stale. Perhaps even worse is a home that sells overprice because the seller can’t or won’t accept the true value of the property.
What happens then helps neither the seller or the buyer. Once the sales contact is entered into, the buyer pays for an appraisal. If the appraisal comes in too low, then the purchase price was over fair market value. At this time, a few things can happen.
The buyer and seller can walk away from the purchase. If this happens , the seller is likely to still have problems selling the house at the price they want because most buyers will need a loan an appraisal.
The seller can lower the purchase price to the appraised value and the house can be sold to the buyer.
The buyer can come up with the difference between the purchase price and the appraised price in cash.
If it’s a small difference and the buyer has the cash, they may choose option 3. However, most buyers do not want to over pay for their home and will not or cannot make up the difference in price.
don’t expect that a cash buyer will come riding up on their white horse offering to pay over the fair market value.
Most cash buyers are savvy and expect a discount based upon the fact that they are paying in cash.
Though there are exceptions, generally unless your home is a one of a kind home with a unique view, don’t expect a buyer will overpay just to buy your home.
The best way to avoid this is to price the property properly from the beginning and then review the appraisal to make sure it was fair if the price comes in to low.
If you would like a free market analysis of your property, please contact Christine Donovan at 714.319.9751