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Overpricing your home is a bad idea for several reasons. Perhaps most importantly, it can lead to your home sitting on the market for an extended period without receiving any offers. Waiting with no offers to buy can frustrate homeowners eager to sell.
In addition to leading to a longer sales process, overpricing your home can result in you selling for less than you could have if you had priced it more accurately from the start. This is because buyers interested in your home will likely be put off by the high asking price and may choose to purchase a different property that better fits their budget.
Occasionally, sellers believe pricing your home on the high end is an acceptable risk. Below are a few arguments sellers give to their rationale and why this line of thinking is problematic when selling a home.
- “I can always come down in price later if I have to.”
Yes, someone may find the house irresistible and pay the inflated price, but the odds are the home will languish on the market until the price comes down. Buyers, though, will see this from a different perspective. They’ll be thinking: What’s wrong with the property? Maybe I can get this house for significantly below market value.
- “I must keep the price high for negotiating purposes.”
A house isn’t a used car. Don’t start far above an acceptable price to pad out the negotiations. Buyers will have access to the same market data, and their agents will have a pretty good idea of the home’s actual market value. The ruse will quickly come to pieces, so why not select a price suitable for a quick, fair sale?
- “This is the price I need for my house.”
If there is indeed a price that a seller cannot go under, sellers should also be prepared to stay put when the house doesn’t sell. Sadly, the market is indifferent to the seller’s situation, and other homes are typically available on the market.
- “A house like mine sold for this price… so why not mine?”
Sellers will assume houses are identical. Typically, there are other outstanding reasons the home sold is above market value, especially regarding interior renovations.
It’s essential to be realistic when pricing your home, especially if you have an amount you must receive from the sale. If you price your home too high, it will likely sit on the market for a long time without any buyers. An extended time on the market can cause you to miss out on other opportunities, such as buying your dream home. It’s essential to consult with a real estate agent to get an accurate estimate of your home’s value so you can price it appropriately.
We genuinely understand the emotions and factors involved in finding the correct selling price for your home. We can help. We have numerous tools and ways to analyze the market to help you arrive at an accurate listing price. We feel that this is a price that will get the property sold quickly. When you are ready to talk numbers, we will be happy to give you an accurate valuation for your home. Give me a call 928-277-6404.
