The wrong buyers see the property when it has the best chance to sell: during the first
few weeks after it comes on the market, when it is hot. Buyers shop within certain
prices ranges. If your home is being compared to homes in a higher price range that your’s
warrants, it will not offer the same amenities and will therefore not compare favorably.
Other agents will also quickly spread that word that it is an overpriced listing and will just
show it to help sell other houses.
The home will not appraise at the accepted purchase price. Most buyers require loans
to finance the purchase. The banks always require an appraisal to ascertain that the property’s
value is high enough to protect the bank’s interest..Appraisers establish the appraised value by
looking at similar homes that have SOLD within the last few months. No matter how much
you love the feel of the house, the appraiser is looking out for the bank’s financial investment
and will not add value for nostaglia.
The buyer cannot get a loan. If the house appraises lower than the accepted offer,
the bank will not lend the entire amount requested for the loan. Even if the buyer wants
to pay a higher price, the bank will not lend the money unless it fits within the ratios allowed.
Of course the buyer can put more money down, or the buyer can get a second loan, however
a low appraisal almost always kills the deal or sends the offer back to the negotiating table.
Longer marketing time invariably leads to selling at a lower price, often less than Fair
Market Value. Statistically, homes sold within the first 30 days, sell at a higher ratio to
asking price than at any other time.
