Mortgage FAQ: Should My Home's Price Be Listed Higher to Leave Room for Negotiation?
"I’M SELLING MY HOME AND MY REAL ESTATE AGENT CAME UP WITH A LIST PRICE. IT SEEMS TO BE A FAIR PRICE, BUT SHOULDN’T IT BE A LITTLE HIGHER TO LEAVE ROOM FOR NEGOTIATIONS?"
This is a common misconception among many sellers. Setting your initial list price slightly higher—such as $5,000 or $10,000 higher—can backfire and cause a great deal of problems. In today’s real estate environment, potential buyers (and their real estate agents) have plenty of good information readily available to them and more times than not they’ll know that a house is overpriced—even if it’s just a relatively small amount. If a buyer believes that your home is priced too high, they may decide not to negotiate at all and simply move on. Or, even worse, they may decide not to even consider your home at all and your home may languish unsold on the market. Also, many buyers negotiate things other than sales price.
Negotiations often include upgrades, repairs and other concessions. In the end, it would be wise to take the advice of your trusted agent and list your home at the price they suggest. After all, they’ve put in the legwork and research to come up with a fair market price for your home and it’s a price that they believe—based on their knowledge and experience—will get your home sold in the shortest amount of time.
For more than 25 years, Omega Financial has been serving mortgage clients in Massachusetts. Our brokers have approximately 50 years in the mortgage business. You always will receive fast, courteous, and accurate information. Omega Financial, Inc. is a company duly licensed to operate in Massachusetts as a Mortgage Brokerage. We are located in the Town of Norwood, Massachusetts where we have been operating as Omega Financial Incorporated since 1988.
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