The Dangers of Overpricing your Home
Kelly Zander, VP Realty
The real estate market has been a “seller’s market” for several years, giving sellers the upper hand and leading buyers to fight over their homes. This is causing many future sellers to become tempted to push the asking price of their home even higher when listing it on the market. This tactic may work in some cases but more often than not it puts the seller at risk for having to drop the price several times. Often this price drop ends up below where it should have been if listed correctly in the first place, all while sitting on the market. Here are the top three reasons I think overpricing hurts your home sale:
1. If your home is overpriced it gets overlooked by buyers.
Houses get the most interest in the first two weeks they are on the market. This is a small window to make sure you get all potential buyers through the door. A lot of buyers know that in this market they are going to have to compete for homes so if it already seems overpriced they often don’t even want to look at it. When you do end up dropping the price you will need to drop it a substantial amount to get new buyers in the door. I have found that buyers would rather compete for a home at a reasonable price even if they end up at a higher amount.
2. When a home sits on the market it creates the stigma that something is wrong with it.
Buyers know there are several other buyers out there competing over homes so why is this one sitting. If there is no competition what incentive do they have to give the seller full price? This means they will often come in below asking and with many more demands because they know you don’t have backup offers and buyers lined up wanting to buy the home like when it first hits the market.
3. It still has to appraise at the purchase price
Nobody wants to purchase a home that is worth less than what they’re paying for it. If your buyer is using a loan to purchase your home then the lender will require it to be appraised. If it appraises for less than the purchase price then the buyer will either have to come up with that monetary difference out of pocket or the price will need to be renegotiated.
Ultimately it makes the most sense for a seller to have a professional Real Estate Agent who is familiar with this market and runs a comparative market analysis of your home to see where it would position. Remember that everyone thinks their house is the best and worth top dollar but having realistic expectations is important when choosing your listing price so you get a smooth transaction. Do it right the first time and save yourself the headache!
Vincent Patrick Realty is ready to help you!
If you are looking for a professional real estate agent who can run a comparative market analysis of your home, Vincent Patrick Realty is a brokerage full of experienced Real Estate agents ready to provide you with a list of experienced lenders, and help you put a strong offer on the home of your dreams! Reach out to VP Realty today. Contact us online or by call or text at 330-577-3546.
Meet Kelly Zander, VP Realty
Kelly Zander is a Rockstar agent at VP Realty. Kelly had over $7.3 million in sales in 2021. Between helping sellers list and sell their homes and helping buyers buy their dream homes, she sold over 41 homes in 2021. Kelly is experienced and eager to help you with all your Real Estate needs. Contact Kelly today by call or text at 330-671-5518 or email at kzsoldit@gmail.com. Check out her website, kzsoldit.com, and follow her on Facebook!
