Will More Advertising Sell My Overpriced Home?

By: Marc Rasmussen –

Although advertising is an essential key in selling real estate, buying a home is based on local market value. Advertising an overpriced home can and will hurt the homes selling potential. The most important factor in selling a home is pricing it right. It takes experience and work to price a home in a desirable market range.

Will more advertising sell an overpriced house?

Will more advertising sell an overpriced house?

When a real estate agent gives a price opinion, that opinion is based on a comparable market value. Homes matching the property’s criteria that are available for sale, and homes that have sold within the past six months are compared to generate a viable price range. This type of comparable is done by banks and financial institutions for appraisal. When buyers are applying for a loan, it doesn’t matter if they want an overpriced home or not. No loan approval means no buyer. Factors included in pricing a home for sale are appraisal value, supply an demand, and economic structure.

Buyers look within these comparable ranges when searching for homes. Supply and demand become a key factor in this situation as well. Even in high demand areas, if a home is overpriced, chances are the buyer and buyer’s agent will not select the property for viewing. When a buyer is house hunting, catching the advertisement will arouse their curiosity. However, after comparing like homes at a lower price, buyers will direct their attention elsewhere.

Economic structure plays an important role in home selling as well. When the market is flooded with foreclosures, homes are price lower to sell quickly. This results in lower home prices for the local market. However, pricing a home strategically lower than market value, will drive more buyer interests and produce higher bids on the property through competition. Also, improvements play a key role in buyer interests as well. Standing out against the competition will attract buyers more efficiently than advertising a less competitive home or fixer upper. In a tough economy, buyers look for move-in-ready homes with little out-of-pocket expense for home repairs.

Overpricing a home generally stigmatizes it, causing the home to remain on the market for long periods of time. This can send a red flag to the buyer as to potential problems with the home/property, giving a negative first impression. Also, reducing the price of the home can make the seller look desperate causing extremely low offers and more firm buyer negotiation. Also, a buyer’s agent generally won’t place an overpriced home on their showing lists to avoid losing credibility with their buyers.

A good first impression in a buyer’s mind results in a positive and quick sale for the home seller. Achieving this first impression not only results in an updated, neat and move-in-ready home, but the homes selling price as well. More advertising on an overpriced home can only lead to leaving more buyers with a negative impression, thus buying elsewhere.

Marc Rasmussen | Michael Saunders and Company 


Bayfront on the Indian River Bay $449,900

Here’s a great deal on a waterfront home in Millsboro Delaware.  Similar Homes in Lewes and Rehoboth are typicaly priced well over a million dollars.

3BR / 2.5 BA

Click the link to view additional information: Waterfront Home Millsboro Delaware

Inverted floor plan to take advantage of the spectacular views.  Sunset and Sunrise views included at no additional charge.  Close to boat ramps, golf courses, medical facilities and shopping.

Standard Disclaimer: Blog articles last forever. This information was correct according to data obtained from the Sussex County MLS the day it was post.  November 15 2010


2 Million Dollar House for $1.19M

A letter from a local custom home builder:

“I am selling my house in Wolfe Pointe: I am willing to firesale the house at this point just to get it sold so I can build a house for my family.  I don’t want to build a new house on our lot until I sell the Wolfe Pointe house. Anyway, here are the details:

· The house appraised for $2.453M in November, 2007 (I can send you a PDF of the appraisal)

· The house is 6,600 heated SF and has 5 bedrooms, 5 full baths, and 2 half baths.

· The house won the Regal award for Best Custom Home over $750,000 and the National Award for Best Interior Merchandizing for a home priced over $2M.

· I had an offer on the house for $1.75M plus two weeks on a 165’ yacht that I didn’t take (yes, I am one of those dumb people who didn’t take their first offer and should have)

· I spent $1.71M on the construction of the house at my direct cost and paid $285k for the lot so I have almost $2M in the house

· The house is being sold with or without the furniture.  It includes all the TVs and media equipment (smart home, home theatre, etc)

· I am asking $1.19M without the furniture and $1.25M with the furniture.

If you have anyone who you think might be interested in my house, please let me know.  Somebody is going to get a good deal because this house can’t be recreated for less than $2M.  Because there are renters in the house, I can only give tours to serious buyers.”

This home is not currently on the MLS and you won’t find it on or many other websites.
Please let me know if you are a “Serious Buyer” and I will be happy to arrange a tour.

302 258 4368 – Mike Brown


An Oasis just a mile and a half from the Beach

36804 Oasis Court Rehoboth Beach, DE 19971

Village at Kings Creek

Village at Kings Creek

Village At Kings Creek
Built In 2005

  • 5 Bed / 4 Bath
  • 3,840 sqft
  • $945,000

-Sale Pending-
You have arrived!!! This is not just a Home,it is an Experience!!!Custom Built Palm Beach Style Home,no detail overlooked. Gorgeous Hardwood Flooring, Fabulous Italian Murano Glass Fixtures, Birdseye Maple Custom Cabinetry.Fi Beautiful Crown Molding throughout, Gourmet Kitchen,too much to List. WOW!

I just toured this house today and was thoroughly impressed. This is one of the nicest homes currently available in Rehoboth. To see it in person please contact me at

Standard disclaimer applies : Price was current on the day of this post.  If today is not  August 12 2009 the price and availability of this home may have changed.

Written by Mike in: New Listings | Tags: ,

Rehoboth Bay Waterfront Home

I’ve got a new listing that’s not on the MLS yet.  29 Marshall Road in the community of Old Landing – Rehoboth Beach Delaware.  Direct Bayfront with it’s own 40′ pier ready to accommodate boats up to 30′ long.

At $829,000 this three bedroom ranch is half the price of other homes on the street.  Call me now to be one of the first people in town to view this waterfront retreat.

Mike Brown – 302 258 4368

Written by Mike in: New Listings | Tags:

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