The Risks Of Overpricing Your Home For Sale

Nothing can slow down the process of selling your property better than overpricing it. It is the number one cause for homes to sit on the market and not sell. I specialize in selling homes in the area and am well versed in what it takes to sell a home for the highest price in the shortest amount of time. 

Lowering The Price and The First 30 Days

Listing for a higher price at first and reducing it later is an option that sellers very often ask about. However, in  the first 30 days of a home being listed on the market for sale is typically when you see the most buyer traffic. Pricing the home too high then dropping down later could mean that you are missing out on the best, most serious potential buyers right out of the gate.

Other Agents and Showing The Home For Sale

Some agents won't show listings that are way overpriced. Especially when inventory is higher, agents show homes that are in the potential buyers' price range which meet current fair market value. Also, when a home is overpriced, it sits on the market for a longer time and this can work against you and for your competition, meaning potential buyers will see your property as a selling point for other properties on the market. You don't want buyers to be saying that they can get the same house for less money and actually doing just that. And finally, the longer a house sits also means that buyers will wonder whether or not something is wrong with it. There are fewer buyers interested at this stage as well and you lose some of your leverage because of the length of time the property was on the market.

Lenders and the Final Sale Price

Lenders nowadays are more conservative and cautious than ever and home loans are always going to be based off of appraisals. Appraisals are calculated using comparable properties that have been sold in the immediate area. In order for your buyer to get a mortgage it is going to need to be at a price that is justified by the bank using these properties. Oftentimes when a house goes on the market overpriced it ends up selling for less than market value as buyers eventually throw in lower offers to see if the seller will bite. 

As your real estate professionals I will work with you to price your home accurately. Contact me today if you are in the market to sell your home.