Before giving you the reasons why listing your Naples luxury real estate property above the market can be helpful, let us discuss what is overpricing. Property consultants agree that overpricing a house means selling it more than 10% of market value. Usually, houses are being sold at prices with flexibility range of -3% to +3% of the market sales price.
When should you consider selling your house a little above its market value? First is when the market value of houses is rapidly rising. If there are indicators that suggest that the market value for properties will double after 2 months, then you can price your house a little above than the usual selling price.
Another factor to consider when selling the house above the market value is when you are not really in a hurry to have it sold. You are just “testing the waters” to know if there are possible buyers for your quote. It is a good experiment to gauge the paying capacity of prospective buyers. Who knows there might be buyers who have massive cash windfall ready to pay for any price at the time you are selling the house.
Another reason why listing your port royal waterfront home a little above the market value is helpful is that you create a “room” for negotiation with the buyer. Most buyers would like to haggle for a price lower than what is listed. If you priced your house just a little above the normal price, there is a possibility that the price you finally agreed with the buyer is just the right market value for your property or still a little bit above it.
However, don’t be conceited about pricing your house above anyone else’s. If after several weeks and your house is still not sold, consider lowering the price. Make its price the same as the price of other houses which is evaluated to be the same as your house.
Your main objective is to sell the house with the right profit. If you will be aiming too much for your profit, your house might stay on the listing for months until it becomes passé. When that happens, your option might be to sell at a price lower than what it true value. This situation becomes very scary as it means that you might be losing instead of gaining something.