why buyers won’t just make an offer on any home

December 13, 2011

Sellers often make the decision to try to price their Minneapolis home for sale with a higher price than market analysis arguing that “home buyers can just make an offer.”  Why is this not the way to sell your home, specifically in a market with so many homes for a buyer to choose from?

It is typically not a good idea to start with a high price and the assumption that you can reduce it later if buyers aren’t making offers.  By the time you decide to lower the price it is probably too late.  You might ask, why would it be to late.  Well, a lot of times, buyers perception of price decreases suggests that there is something inherently wrong with the property which is leading you to drop the price.  In the end, you will probably have to settle for a selling price below market value when if you would have priced your home for sale at market value you would have received a stronger offer to begin with.

It is fact that your home you are selling will generate the most attraction from the get go.  Real estate agents are able to see cumulative days on markets and so can their clients they are working with.  If your price is to high relative to your competition and comparable Minneapolis properties for sale, the righrt buyers will not even look at an otherwise attractive property.

The value of Minneapolis homes for sale is relative to what a buyer is willing to pay as a market price.  What a buyer is willing to pay at market price relates to more than just first impression of the home.  They will take into account original list price, days on market, price change history and many other factors in determining what they are going to spend to buy a home and the longer your property has been on the market combined with more price decreases will not only be a red flag to them, it will typically warrant in a lower offer price.