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Saturday, July 02, 2016

Pricing Your House at the High End of the Market: The Pros and Cons

While on a recent listing appointment the prospective seller had much different opinion on the value of their home.   This is not unheard of in real estate. 

During these listing appointments a real estate agent owes it to their prospective customer to voice reservations and concerns about the property and pricing.

Listing appointments are meant to allow honest straightforward discussion.  They are not meant to be antagonistic (mine aren't) but rather serve to gain an understanding of motivation, goals, and the subject property. 

Selling a home involves three principle activities:  preparation, pricing and presentation (Read more about The Three Ps).

Pricing too high can kill a listing as it lingers on the market with little interest.  Too many days on the market sends a message that there is something possibly wrong or that a seller is not motivated. Still in a rising market such as the Brevard County, Florida market it is quite OK to be price optimistically.

As long as the reasonable optimism is understood that it comes with a cost.  Sellers sometimes forget about the carrying costs associated with pricing high or holding out for more money.

What are these carrying costs?

Things that have easily identifiable dollars and sense include items such as
  • Mortgage principle and interest
  • Taxes
  • Association fees
  • Insurance
  • Utilities
Some carrying costs are not as easily assigned a specific dollar value but they are still a "cost."  These may include items such as identified but they are just as real..
  • Time.  Coordination of showings, leaving for showings, having routines interrupted, etc.
  • Energy.  Keeping the house ready for showings, etc.
  • Risk.  Risk of loss through theft, someone being injured on your property, etc.
  • Stress.  Especially if there is tight finances or a long distance move or change is family situation involved.
  • Time value of money.  
Get the best price possible for a seller's home understandably important.  Recommending a price that will work is key.  As a Realtor it is my job to market in such a way as to get the most money possible for a home's condition and seller's goal. 

That includes making sure a seller understands the pitfall of pricing too high.

Ready to sell your Viera, Florida home?  Call or text me at 321-693-3850 for your market analysis.

Image courtesy of Stuart Miles at

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