How do you set the right price for your home in Woodbury, MN? This is an excellent question. While it may be tempting to price your home high, this strategy is ill advised. There are several reasons for this:
- Buyers will not overpay for homes. You think you are outsmarting a buyer? Think again. Home buyers today do a lot of research. They know the market and know what they want. They will pass your home and make offers on homes that are priced correctly for the Woodbury real estate market.
- Banks will not write loans for overpriced homes. Even if you do get an offer for your high price, appraisers are cautious to over value homes. Lenders are not backing mortgages on homes that aren’t worth the asking price. Remember, that’s what got us into the recent recession. If you have overpriced your Woodbury home, don’t be surprised if the deal falls through when your buyer can’t get financing approved.
- New buyers will shy away from a stale listing. Buyers know how long your home has been listed. The number of ‘days on the market’ is public information on the MLS. If your home has been lingering on the market, new buyers entering the market will wonder what’s wrong with it, assuming if it hasn’t sold it must be for a reason. They may not even want to come look at it! If you are not in a hurry to sell and think you can list high and wait for a good offer, you will find this strategy will backfire.
The only way to know what your home is worth is to have an experienced real estate agent perform a Comparative Market Analysis (CMA) on your Woodbury home. John and Becky Durham are top selling REMAX agents in Woodbury, MN. They would be delighted to meet with you and help you determine what your Woodbury home is worth in today’s market.