Even in a sizzling hot real estate market, some listings languish on the market and the biggest reason is that that they are overpriced. Because even in a hot market, most buyers won’t touch overpriced listings with a 10 foot pole.
For potential home sellers, that can be confusing. We recently saw a home in Long Beach sell for $100,000 less than its original list price — far less than it would have sold for if it had been priced right originally.
Often would-be sellers think they must start high so there is room for negotiation. Yet in our current market environment, well priced listings are selling at list price — or above. And buyers are avoiding the homes that are overpriced.
Why is that?
Just like home sellers, buyers also study the market and pricing. They are also looking at a number of homes online or in person so if a home is priced well above its competition, it may not even fall within the search parameters of buyers who are looking for homes in that area and price range.
And when buyers are working with a Realtor, that Realtor typically isn’t going to show them homes well above their desired price range.
If they do happen upon a home that appears to be overpriced, serious buyers don’t usually want to waste their time because they may believe that the seller isn’t really motivated. The only buyers likely to make offers are investors, and even those will usually come after the home has been on the market for quite a while.
Everyone’s motivation is different, but most home sellers list their homes to sell. To accomplish that goal, it’s best to do everything right from day one. That includes getting the home in show ready condition, working with the right agent and pricing the home right.
As a professional, I come across overpriced as well as underpriced homes for sale. Those that are overpriced will either expire or see a major price reduction after a long marketing time. The ones that are underpriced will often generate multiple offers and sell over list price in our current market.
If you’d like to discuss pricing strategy for your home, please fill out the form below and we’ll be happy to contact you.