Question:
“We’ve had our home on the market for 3 months for $700,000 and want to get around that price. But we keep getting offers +/- $650,000 and they won’t go any higher. Since the offers are $50,000 below our price, we’re going to raise our list price to $750,000, then we can negotiate down $50,000…”
Answer:
No, no, no!
That’s not how it works.
Very few homebuyers are stuck on offering a certain amount below your list price. And I can tell you THOSE homebuyers are not the ones that will pay you market value.
The vast majority of homebuyers are willing to pay what they think a home is worth. Sure, some may start low, but they’re willing to pay value.
(After all, what IS value other than what people will pay?)
So your problem isn’t that you need to ask $50,000 more than you want. Your problem is that you want $50,000 more than your home is worth.
Because price is half the marketing, if you raise your price, you’ll get LESS showings, FEWER if any offers, and a LOWER price–if you sell your home at all.
If you’re not comfortable selling your home for what it’s worth now ($650,000), then it home off the market until the price rises to meet your expectations…or lower your expectations to what the current value is.
