Pitfalls of overpricing your home
Overpricing is the number one reason why homes don’t sell
Price Reductions and the First 30 Days
Sellers often feel that if the home doesn’t sell at a high price, they can always drop the price later. Although that’s true, you may risk missing out on the most serious buyers. Our experience shows that the first 30 days brings the most buyer traffic.
Many agents know when a listing is over-priced and will not show it to their potential buyer. Especially when inventory is high, agents will only show homes that they know are priced right and in their customer’s price range.
Too Much Time on the Market
A home that sits on the market too long can pose a problem and become an advantage for your competition. You don’t want buyers to see a similar house to yours and ask, “Why should we be your home when we can buy that similar home for less. Also, many buyers might thing something is wrong with it if it sits on the market for too long. The two most questions buyers ask are, “How much? and “How long has the home been on the market?”
Loans are based off appraisals. Appraisals are based off comparable properties that have been sold. You can easily lose a deal if your home does not appraise.
The Final Sale
Generally, when a house goes on the market overpriced it ends up selling for less than market value. Today’s buyers are educated in the market and they lose interest when they think a home is over-priced and you lose some of your leverage in negotiating because of the length of time the property was on the market.
As your REALTORS®, we will work with you to price your home accurately and work hard to get you the Fair Market Value for your home so you don’t run into the problems we’ve outlined above. We want you to get the most money that you can for the sale of your home and will work with you each step of the way.