Why Overpricing Doesn't Work

In today’s hot seller’s market, many people are wondering if they should overprice their homes. The answer is no.

There are a variety of opportunities in the Central Pennsylvania real estate market for both buyers and sellers. If you're a prospective buyer click here for a full home search, or if you're considering placing your home on the market, get a free home value report, right here.

A question I want to address today is: “Do buyers make offers on overpriced homes?” The market is sizzling hot right now. Many of our local areas are experiencing low inventory with high demand. This means we’re absolutely in a seller’s market. With conditions like these, it can be tempting for sellers to want to list above fair market value in the hopes that buyers will make an offer anyway. However, this isn’t a good idea. Despite the lack of inventory and the high demand we’re seeing in the market, buyers simply will not make offers on an overpriced listing. Buyers, just like sellers, study the market and are often working with knowledgeable Realtors to ensure they’re making the best decisions. Not only that, but most buyers’ search criteria will fall within their pre-approved price range for their mortgage. Buyers who are approved to purchase homes up to $250,000 won’t even look at homes in the $300,000 price range. They aren’t going to waste time on homes they can’t afford. Homes that are priced correctly, however, are flying off the market.

Buyers simply will not make offers on an overpriced listing.

So what happens if your Realtor suggests you list above market value, anyway? An agent who does this may not necessarily understand the market and could simply be trying to earn your business. 

At Joy Daniels Real Estate, we list homes to sell, and listing your home to sell means doing everything right from day one. If you’re going to list to sell, you should make sure your home is in show-ready condition, you should work with the right Realtor for the right reasons, and, most importantly, you need to price your listing correctly.

As a professional real estate agent, I’ve seen a lot of overpriced homes. Typically what will happen is that they will either undergo a major price reduction after sitting for too long on the market or they’ll just expire. 

Real estate is local. What happens elsewhere won’t be the case everywhere. Pricing your home correctly for your local market will not only help it sell, but it could help you to generate multiple offers above list price. 

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

How Could a Short Sale Help You?

Following the crash in 2008, many agents have done anything and everything they can to avoid short sales. However, short sales are largely misunderstood, and can actually be a great option.

There are a variety of opportunities in the Central Pennsylvania real estate market for both buyers and sellers. If you're a prospective buyer click here for a full home search, or if you're considering placing your home on the market, get a free home value report, right here.

After the market crash in 2008, the term “short sale” was heard more and more often within the real estate market. Due to a lack of understanding, agents tended to avoid short sales at all costs. Now, a decade later, things are much better for both buyers and sellers. Short sales, however, are still a part of our market. Here to talk with us today about that very topic is Jason Sanseverino of My Closing—our group’s go-to listing company. Since My Closing specializes in short sales, I brought Jason in to help explain a little bit about them. A short sale is a type of sale in which the net profit doesn’t cover all of the real estate needs. To determine if a seller qualifies for a short sale, the homeowner must have faced a hardship which has made them unable to make the mortgage payments. Some typical hardships include divorce, illness, the death of a borrower or immediate family member, reduction of income, excessive obligations, and also forced or military relocation. These are all hardships that are seen as qualifiers for a short sale. But what happens if the seller has surplus funds? Unfortunately, this means they likely don’t qualify for a short sale.

A short sale can be a win-win situation for both buyers and sellers.

Sellers who do qualify for a short sale, though, won’t have to worry about typical closing costs when they work with My Closing. 

Things like Realtor commissions or real estate taxes will all be included in the short sale. In fact, qualified sellers may even receive money from their property through their lender as a relocation incentive. 

Buyers, however, should expect traditional transaction costs. In short sales, buyers might be exposed to certain additional expenses including HOA bills. However, My Closing will do a complete title search in order to eliminate any of the surprises. This will allow us to notify buyers up front.

In certain circumstances, a short sale can be a win-win situation for both buyers and sellers. If you’d like to understand your options as a seller, feel free to contact Jason at 877-299-0215. Otherwise, we also have agents available.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.