The Dangers of Overpricing Your Home for Sale
Seller Beware: the Dangers of Overpricing Your Home in a Seller’s Market
The instinct to price high in a seller’s market is a common one. What can go wrong? Well, there may be some adverse consequences to overpricing that could affect the sale of your home, even in a promising seller’s market…
Scaring off Buyers (and their Agents)
A good agent will be able to spot an overpriced home, and may lead their clients away from it without even giving the home a chance. Even buyers without an agent will be turned off from your home if the price is far beyond others in your area. Because of this, listening to what the market can- and will- bear is very important.
Issues with Home Appraisals
Regardless of how much you feel your home is worth, the appraiser who will inspect your home on behalf of the potential buyers will appraise your home according to the market. If the asking price is too high, the buyers will not get their mortgage approved, which leaves you in the dust, looking for new buyers.
Stagnate on the Market
These are just a few situations that may arise and be to your disadvantage when selling your home. Listening to what the market can and will bear is very important. Something that is easy to forget when you are pricing your home is that sellers don’t actually determine the right price- buyers do! What the able and willing buyer ends up paying ultimately determines the market price, and buyers rely on comparable sales to justify their home purchase. Instead of getting caught up in the idea of a “seller’s market”, and in the emotional attachment you have to your home when determining its worth, you must think like a buyer, and, aim to achieve the highest return in the long and short run. Instead of overpricing, list your home just under a break point. You are already anticipating a negotiation, and a house priced slightly under might just get you a full-priced offer from the right buyer.