Your home’s list price can make or break your home sale. Even in a red hot seller’s market, overpriced homes take longer to sell. In a constricting market with lower buyer demand, it’s even more crucial to price right. Here are 5 pitfalls of overpricing your home:
1. Creates a Bad First Impression
First impressions matter when selling your home. New listings have about a two week window of opportunity when they have the most interest and highest number of showings. Buyers who compare your home to other listings or recent sales and think the price is too high may choose not to see it in person.
2. Takes Longer to Sell
In real estate, time is of the essence. Overpricing your home could cause it to sit on the market. Buyers pay close attention to the number of days a home has been on the market. If a home has been on the market for too long, buyers may assume something is wrong with the home.
3. Leads to Low-Ball Offers
Your best chance of getting a competitive offer is within the first few weeks that your home is on the market. Some homebuyers present low-ball offers when they notice a home has been sitting on the market for a while.
4. Causes Appraisal Issues
Even if you were fortunate enough to find a buyer willing to pay more than market value, most buyers will want and need an appraisal. The buyer’s lender will require that an appraisal support the sales price and that appraisal is a standard contingency of the contract. Appraisers look at many factors and compare the property to active listings, pending sales, and recent closed sales. A low appraisal creates problems.
5. Favors Competitors
If your home is overpriced compared to other listings in the neighborhood, it makes your competition look more appealing to buyers. Usually, if buyers have to choose between two similar properties, they’ll lean towards the less expensive one.
Pricing a home at market value will set you up for a smooth transaction. To get the current value of your home, fill out the form below. Or, give us a call at 562.896.2456.