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A price that’s too high is just all too common, and a huge part of How to Sell a House Fast. And even moreso that its the one main fact that 99% of home sellers do not want to hear. It’s unfortunate, though even worse when its the frustration of the situation that is a cause that makes the situation worse. Let me explain some factors to take into account:
For example, let’s take a situation of a home where it has been on the market for too long. Let’s assume for this example that the price is one of the factors, which it always is, even if the home isn’t overpriced, because a less expensive home will always sell quicker (unless we’re looking at the $1million+ price range, where higher price is actually attractive. But that’s a whole different mindset!) So let’s consider “normal” people, like you and I.
So the home is on the market too long, and price is a factor. So, for ease, lets say the monthly mortgage is $1000. Let’s say its been on the market 6 months. That’s $6000 in monthly payments. If the home had been sold day 1, that would be $6000 savings. So, in the beginning, if the home had been priced at, lets say, $144,000 instead of $150,000, this could have made the home immensely more attractive to a buyer. Remember, the $6000 did not build equity on the home, because unless the homeowner is over the 20+ year mark, none of the payments go 100% onto the principal, its mostly towards the interest. We can look at the chart at right and see the standard payment allocation. It’s not until around year 20 that the monthly payment actually goes more towards equity & principal than on throwing it away to interest.
So you can see, that by just holding out for a bigger price, the money ends up being just thrown away, the price has to be lowered in the end anyway, the sellers are stuck in the home instead of just moving on, and the house drops in value. Because the longer its on the market, the value always drops no matter what, just because, even if improvements are made to the home. That’s just the way it works.
> Call David Now: How to Sell House Fast 828.216.5425