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The Risk to Sellers in Overpricing their Miami Listing…

With all of the good news being written about the South Florida real estate market in the media these days http://www.miamiherald.com/2012/06/18/2854896/search-for-a-deal-leads-to-cutler.html , Sellers have raised their expectations.

The Dade County MLS statistics support their optimism. Supply is down and demand is up in South Florida. Many of these Sellers are looking to upgrade to a larger home at today’s historically low interest rates and still reasonable prices.

However, no matter the trends, it is still risky for Sellers to overprice their listing versus competing listings. The thought process amongst Sellers willing to price at the top of the price range is “we can always come down if there is a reasonable offer”.

What these sellers are not considering…
The longer a Miami listing is on the market, the less value that listing has in the eyes of Buyers and the Realtors that represent them.  Listings become stale.

For a Seller, the worst thing a Buyer can say is “we like the home but let’s keep looking”. 

When a Buyer says this, it means the price is not compelling enough for that Buyer to make an offer before he or she loses the opportunity to another Buyer.  That Buyer and their agent will then monitor the Miami MLS for brand new listings that are introduced to the market at a competitive list price.  Once a new listing hits the market, a Buyer’s Agent will gain access to the new listing within 24 hours to see if it suits the Buyer’s needs.  If so, an offer close to full price will be made before another resourceful Buyer’s Agent introduces the new listing to their Buyer.  Meanwhile the overpriced listing lingers on the market and the process continues with the remaining Buyers in the market place who just lost the opportunity on the brand new listing.  Price matters.

“Why hasn’t that house sold?  There must be something wrong with it.”

Therefore, in today’s recovering Miami real estate market, it is still important price one’s home strategically on the market.  There are plenty of attractive Miami homes that have been on the market for up to a year.  They have become stale in the market place because Buyers and their Miami Realtors start to wonder…”why hasn’t that home sold after 6 months to a year on the market?  There must be something wrong with it. ”

The price that a Seller chooses on day one of the listing creates urgency in the mind of buyers (if priced properly).

 

ShowcaseMiami Realty specializes in assisting homeowners to Sell their Miami home.

(Highest price in the Shortest period of time)

To discuss a strategy for your home, call…

Jason Smith

Broker (Seller Specialist)

ShowcaseMiami Realty

www.ShowcaseMiami.com

786-326-8115