Get It Right the First Time

Did you know you could end up penalising yourself by overpricing your home when you put it up for sale?

Some sellers think they can throw out a high price to “test the market” and adjust it downwards later, if no one bites.

However, this approach is likely to cost you both time and money.

Once a home lingers on the market, it becomes stale and you'll end up dropping the price. That's often a signal to buyers that the owner is getting anxious, so they may offer even less.

When we're asked to list an overpriced home, we like to invite the seller to do a reality test.

Pretend you're the buyer. Ask your Bahamas Real Estate Association agent to find out how much comparable homes in your area sold for, using the most recent data available.

If nothing's sold in your area for a long time, you'll have to factor in the current economic climate.

If the price is higher than the other homes, would you buy it? Would you spend $10,000, $30,000, $50,000 or even more on a home that's not much different than the other comparable homes in the area?

Of course not! So why would a purchaser?

More to the point, do you think the bank will lend a buyer money on an overpriced home?

Don't penalise yourself by starting out too high. Get a bank approved appraiser to identify his/her estimate of value and go with that.

If you want to sell as quickly as possible, price your home slightly under the appraised value and slightly under the competetion.

* Your leading Bahamas real estate source.