Dangers of Overpricing Your Home:
There are 2 Common Reasons WHY People overprice their home.
1. Perceived Property Value: Homeowners often have an emotional attachment to their home and may believe that their homes are worth more than market comparables suggest.
– Their are Personal memories, renovations, and sentimental value can inflate their perceived worth, leading to an inflated listing price.
2. Room for Negotiation: By setting a higher initial price, sellers anticipate potential buyers negotiating the price down to an acceptable range. Yet, buyers are not coming in under market value right now given our low inventory situation.
What Happens If You Overprice Your Home?
1. Reduced buyer interest: Overpricing your home can deter potential buyers from even considering it. Most buyers conduct extensive research before making an offer and have a good understanding of market values. They can go on Zillow and see what has sold recently.
2. Extended time on the market: The longer your home remains on the market, the more it becomes stigmatized. Buyers may perceive a property that has been listed for an extended period as undesirable or flawed, even if that’s not the case. People literally start to ask their agent… “What is wrong with it?”
3. This is my favorite – Missed opportunities: Pricing your home too high can result in missed opportunities for potential buyers who might have been interested if the price was more realistic. These buyers may overlook your property altogether or focus their attention on other homes with more favorable pricing. By the time you realize the mistake and lower the price, some potential buyers may have moved on to different options.
4. You create the most demand for the best sales price possible the first 4 days on the market. Every serious buyer is on an auto search online. When a home comes on the market that meets their criteria they go ASAP in this market. You will get the most showings the first 3 days on the market so CAPITALIZE on it.
5. Limited negotiation power: The longer your home sits on the market the less leverage you have for negotiating.
6. Lower final selling price: In some cases, overpricing a house can result in a lower final selling price. If your house sits on the market for an extended period without any offers, you may eventually need to lower the price to attract buyers. By that point, you may have missed out on potential buyers who were interested when the house was initially listed at a more reasonable price.
RED ALERT – Tip of the Week:
When Selling Your Home Pictures are Your #1 Marketing Tool
– Think about it. 99% of buyers are online looking at homes. They input their criteria into a site like Zillow and filter their results by pictures.
For a complete list of all of our show topics on Senior Real Estate Planning visit: https://seniorrealestateplanning.buzzsprout.com
Thinking about making a move and don’t know where to start, call me. I am happy to guide you and help you decided what is the next RIGHT step for you. (267) 397-6291