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- Sellers lose the positive impact of the
newness of their home on the market, and can lose prime selling
time.
- Buyers concentrate on objections and
minimize good features of the home.
- Sales associates lose enthusiasm about
showing properties that Buyers reject due to price. They
prefer showing homes where their chances of selling are better.
- Sellers place themselves in a poor
position to obtain maximum dollars, since property can become
"shop worn."
- Sellers lose valuable time. Time is
wasted in preparing for showings; families are separated
needlessly when an out of town transfer is involved, and school
openings are missed.
- Sellers lose money in more house
payments, utility bills, taxes and insurance.
- Buyers become suspicious, thinking that
there is something wrong with either the home or the neighborhood,
when a home has been on the market too long. Buyers always
ask how long the house has been on the market.
- Negotiations between Buyers and Sellers
usually break down when a home is overpriced because a Seller does
not recognize a good offer when he/she sees one.
- Seller loses opportunities to buy another
home, or incur additional costs when carrying two mortgages.
- Statistically homes that are on the market longer sell for less than fair market value.
| |
% of Buyers Who Will Look |
| Percentage listed over fair market value: 10%: $110,000 |
2% |
| 5% over Fair Market Value: $105,000 |
30% |
| Fair Market Value (F.M.V. ideal pricing!): $100,000 |
60% |
| 5% under F.M.V.: $95,000 |
86% |
| 10% under F.M.V.: $90,000 |
92% |
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