A lot of times in our industry potential clients want to push the envelope to see if they can get more for their home. As experts in our field, we always show them the numbers and advise against it. Here are the big reasons why you should not overprice your home:
- It can discourage a potential offer - Buyers are more likely to not put in an offer on your home if it is completely out of their price range and the neighborhood averages. Buyers have a perceived value when looking at homes and if yours does not fit the bill because of the price, they won't even think twice about passing it up.
- No showings - Pricing your house at the higher end of homes in the area or well above all others could mean that you lose traffic and a potential buyer.
- Appraisal - Even if your home is purchased for the list price you still have to pass an appraisal. This could hurt the buyer and the seller if there is lending involved in the purchase of the home.
- Your high listing helps sell other listings - By having your home overpriced you are giving buyers the perceived idea that the other homes in the area are much better deals because of the lower prices. Which leaves your house on the market and your neighbors home sold.
- Lower net for the seller - If a home is not priced right from the beginning it could mean that a home sits on the market for weeks or even months with price reductions. The seller could end up netting less than if they had priced it right in the beginning. Buyers are weary when a home sits on the market for long periods of time with price reductions.
When you have been in the real estate industry for over 20 years you see a pattern in buyers and sellers. If you want to get your home sold and in a timely manner, pricing it right at the beginning will help you to reach that goal.
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