If your home is on the market, you want it to sell for the highest possible price. But what if you overprice it? Overpricing your home can actually hurt your sale, and here’s why:
Your home can sit on the market for longer
Overpricing your home can be a grave mistake when selling your property. Although setting the price at a high initial level may seem like the best option for taking advantage of potential buyers, studies have shown that homes tend to stay on the market for longer periods when priced above market value. Initially overpriced listings eventually sell for prices comparable to or even below market value, making them needlessly difficult and time-consuming on the seller in the long run. Setting an appropriate and realistic pricing level from the start can help maximize profits while significantly shortening the timeframe to close a positive deal.
Potential buyers may feel they are wasting their time
A home that is overpriced, poorly presented, cluttered or dirty can be off-putting for buyers, making them feel as though they’re not getting a full picture of the property. This can make potential buyers frustrated and give them the impression that they are wasting their time looking at your home. To avoid this negative response, buyers should strive to keep a clean and inviting atmosphere in their house – showcasing the features that draw attention. This will ensure you capture viewers’ interest during an estimate and make it more likely for your home to be chosen by a serious buyer.
It can make your home appear less desirable
Overpriced homes can often lead to a diminished level of interest from potential buyers and make them draw comparisons between your home and other houses for sale. If your home hasn’t been updated recently, it could cause the value to drop even further. This can be especially damaging to a seller’s hopes – after all, when there are many properties on the market, having an underwhelming stake will almost always decrease your chances of achieving an ideal result.
It will be harder to negotiate later
Reducing the price of a home has its advantages, such as making it more competitive in the marketplace and potentially attracting more buyers, but there can also be potential drawbacks. When a seller lowers the price, prospective purchasers become aware of this from market analysis and gauging comparable homes in the area, so they may be more likely to negotiate further on an already reduced price. This could mean that the seller has less bargaining power when attempting to close deals or reach an agreement on terms with buyers.
Don’t Skip Professional Assistance
When it comes to selling your home, you need to ensure that you price it effectively. Overpricing your home at the beginning of the process can lead to having the property on the market for far longer than necessary and potentially leave you with a lower sale value than expected. To avoid this dilemma, research what comparable properties are going for in today’s market and use that data as a guide when pricing your home. Better yet, hire a professional real estate agent. Agents are experts on the local market and can provide you with information to allow the proper price from the start.
Doing so ensures that you get the most return on your investment without sacrificing too much of your own time and energy. In other words, setting an appropriate price from the start can help ensure that, in the end, you get exactly what your property is worth.
Ultimately, it is important to take the time to research and decide on an appropriate pricing strategy for your home. Overshooting with an overly ambitious listing price might be tempting, especially when you consider the potential extra cash you think you could get. However, overpriced homes will likely stay on the market longer than those accurately priced. If that happens and you need to adjust, it’s possible that you won’t get the maximum value out of your home in the end—and may even find yourself having to negotiate with buyers who are expecting a discount. Careful consideration of your options can save you headaches (and money) in the long run—so be sure to do your homework before committing to any one plan of attack.
#HomeSale #RealEstateTips #PricingStrategy #PropertyMarket #SellSmart
Richard has extensive experience in all aspects of buying and selling residential property. He has sold more than 400 homes and well over $100 million in residential real estate. There’s no need to guess. Get expert advice that will allow you to buy and sell with confidence and ease.
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