It is fair to say that sellers would love their home to sell for the highest possible price. Understandable. Unfortunately, this strong desire and motivation are why it's easy for agents
Why Overpricing a Home Hurts Sellers in the End
Dated: January 21 2021
It is fair to say that sellers would love their home to sell for the highest possible price. Understandable. Unfortunately, this strong desire and motivation are why it's easy for agents to "buy" listings. If you're not familiar with the concept, "buying" a listing is when an agent tells a client their home is worth far more than the market value to win the listing. This tactic is unethical, but sadly it is not illegal.
Sellers are susceptible to this tactic because they want to think that their home is worth more than comparable homes on the market. Sadly, agents tend to encourage this line of reasoning.
Occasionally, sellers believe pricing your home on the high end is either an acceptable risk or even a benefit. Below are a few arguments sellers give to their rationale and why this line of thinking is a problem when selling a home.
1. "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.
2. "I have to 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 price right for a quick, fair sale?
3. "This is the price I need to get for my house."
If that's true, sellers should also be prepared to stay put when the house doesn't sell. Despite dire and essential reasons why sellers can't accept lower offers, the market is indifferent to the seller's situation. There are other homes on the market and other sellers that are not burdened by the same reasons.
4. "A house just 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 above market value, especially when it comes to interior renovations.
We truly understand the variety of 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. A price that we feel 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 us a call: 928-277-6404.