You may be getting ready to put your house on the market and wondering what you should price your house at; wanting to make profit on the sale or get your investment back. Your Real Estate agent should advise you to increase your odds of selling your home, you need to list it at fair market value. This may seem logical, but many sellers are still tempted to over price their home in hopes to make a profit.
Here are the 7 Sins of Overpricing- Read Below and Don’t Fall Victim to these Overpricing Traps
1. Appraisal Problems
Over 90% of buyers use some kind of financing to pay for their home purchase; if your home won’t appraise for the purchase price the sale will likely fail.
2. No Showings
If you haven’t had any showings yet, it’s probably because your home is overpriced. Today’s buyers are well educated and won’t bother looking at you home if it is overpriced.
3. Branding Problems
When a new listing hits the market, agents quickly check the property out to see if it’s a good fit for their clients. If your home is branded as “overpriced”, reigniting interest may take drastic measures.
4. Selling the Competition
Overpricing helps your competition. How? Look at the other homes for sale in your neighborhood and their asking price; is your price higher? Well, your sale price can make their lower prices seem like bargain. Nothing is worse than watching your neighbors put up a sold sign.
The longer your home sits on the market, the more likely it is to become stigmatized or stale. Have you ever seen a property that seems to be perpetually for sale? Do you ever wonder – What’s wrong with that house?
6. Tougher Negotiations
Buyers who do view your home may negotiate harder because the home has been on the market for a longer period of time and because it is overpriced compared to the competition.
7. Lost Opportunities
If you home is overpriced, you will lose a percentage of buyers who are outside of your price point. These are buyers who are looking in the price range that your home will eventually sell for but don’t bother seeing your home because the price is above their pre-set budget. Most buyers will look at 10-15 homes before making a decision. Because of this, setting a competitive price relative to the competition is an essential component to a successful marketing strategy.
If you are interested in learning more about how to competitively price your home in today’s market, contact me, Kevin Toll at 610-609-1096 for more information.