The Goldilocks Syndrome

According to an article which appeared in the October 31st issue of the St. Petersburg Times, sellers who set an asking price that is too high suffer from the "Goldilocks Syndrome" -- that is, they want more gold than the market is willing to deliver for their property.

The article points out that there are a number of factors which sellers need to keep in mind when setting the price ...

1. The Economy. Sellers have to keep in mind what the market will bear. Those prices from 2005 and 2006 have gone the way of the dinosaur, so don't ask what you won't get.
2. Comparable Sales. Buyers, appraisers and real estate agents look at price per square foot. That value is determined by the selling price of similar homes in your area. That selling price is the market telling sellers what it is willing to pay for a house in a particular neighborhood. Smart sellers listen attentively and act accordingly.
3. Amenities. Upgrades can increase your value, but not on a dollar-in-dollar-out basis.
4. Location. Yes, location matters. It's not just your neighborhood, it's where you are in your neighborhood. Busy streets -- even in a great community -- are less desirable.
5. Seasonal Influences. Pay attention to the school schedule if you're selling a family home. Families tend to buy in the summer so they can be moved when school starts. Second home buyers tend to buy in the winter when the snow is flying in the north. Time your sale accordingly.
6. Appraisal. Mortgage lenders won't approve a sale for more than the appraiser feels the house is worth. So, even if you get your "dream price", you may not be able to close the sale unless you have a cash buyer.

If you follow these six steps you should be able to avoid the Goldilocks Syndrome, price your house correctly for the marketplace, and sell it at the highest price in the shortest time.

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