Pick the Right Price to Sell a House: Don’t Price Your House Too High
Does the house you’re thinking about buying seemed priced too high? Or maybe you’re planning to sell your house and want to price it high so you have room to come down, you know, to allow for wiggle room.
Selling a house is no small chore, it’s actually a huge chore. There are so many different aspects involved in the sale of a house. Do you know the most important part of selling a house? Is it the advertising? Is it pricing it to match the zestimate for your house? Is it having your REALTOR® do an open houses? Here’s the real answer…the most important part about selling your house is knowing the current market value so you don’t price it too high.
Occasionally, houses are intentionally priced low to generate competing offers and increase the purchase price. And, it can work in some instances.
Pricing your home too high, though, is dangerous. Overpriced homes sit on the market, day after day and month after month, until the price is lowered. You start to say, “is my home overpriced?” Your listing becomes stale, buyers assume something is wrong with your house, and they will avoid it. As you continue to lower the price, eventually you will get that buyer who knows they can get a deal on your house. And, you end up selling it for less. Don’t put yourself in that situation!
5 Negative Effects of Overpricing Your Home
Overpriced Homes Take Longer to Sell
Timing is everything. When a house goes on the market, the greatest potential to attract buyers is within the first 30 days. By pricing it high with the intention of dropping the price later, you are completely bypassing your best candidates for buyers. Overpriced houses sit on the market for sale. Then buyers start to wonder what’s wrong with the house and they completely avoid it.
Overpriced Houses Have Few to No Showings
Buyer agents are obligated to do what is best for their clients. Showing overpriced listings does not fall into that category. Buyer agents will undoubtably show properties that are within their buyer’s price range and that meet the current fairs market value. And, buyers don’t want to look at houses they think are overpriced. They will wait until the price is reduced. That is, if they haven’t already found a house that is more accurately priced.
Overpriced Homes Help Sell the Other Houses for Sale
When a house is overpriced, it not only sits on the market, but acts as a selling point for the houses that are priced correctly. Buyers will say, “I can get the same house for less.”
Overpriced Homes Might Not Appraise
If a house is overpriced, and a buyer is willing to pay that price, these are big risks because the house still has to appraise. Overpriced houses typically appraise for less, and you’ll be forced to either lower the price anyway, or put your house back up for sale after the buyer goes to find another house.
You’ll Make Less Money
When a house starts out overpriced, it almost always ends up selling for less than market value. With few buyers to choose from, no leverage because of the amount of time it’s been for sale, too high a list price, and the continued costs to maintain your house while it’s been for sale, most sellers end up getting the least least amount of money rather than the most.
2 Things Buyers Ask When Choosing a House to Buy
- What’s the Price?
- How long has it been for sale?
If a house has been for sale a while, you can be sure buyers will wonder what’s wrong with it. When the seller finally lowers the price, some buyers will finally make an appointment to see it. If one of the buyers likes the house, they will make an offer based on how long it’s been for sale. AND, it will end up selling it for LESS than if it had been priced correctly from the beginning.
The bottom line? Trust a Realtor® when deciding on a list price, we know what we’re doing!
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