After a long, grueling search, including several overheated bidding wars, Jim and Claire found the home of their dreams. They were ecstatic when their offer was accepted and the transaction
How To Price Your Home
Are you thinking about selling your home? Your first thought should be to contact a Realtor®, maybe three. After interviewing them, one suggests a much higher list price. might be how to price your home to get your maximum value. Wow, that sounds great, right? Maybe not. What happens if you overprice your home? Here are 3-5-7 dangerous effects of overpricing your home:
Overpricing Costs Time On Market
Overpricing Costs Time On Market
You miss the initial attention to the market and in a hot market as days on market (DOM) are increased, it can create a stigma to the property as well as losing credibility to buyers agents that know it’s not reasonably priced.
One point that buyers look for when evaluating a property is the days on market.
When a property is on the market for 30 days or more, buyers begin to think that something is either wrong with the property or that it is overpriced. When buyers think that a property is overpriced, they expect a reduction in price.
It may take longer to receive an initial offer.
2. Limits The Potential Buyer Pool
More buyers are qualified to buy at the lower price ranges than the higher price ranges. So as you go up in list price, fewer people will be qualified to buy.
It’s important to be aware how buyers search for homes on line when you are setting your price. These days, they fill out web forms and include a price bracket. Often the breaks are every $25,000. So, you wouldn’t want to be just above a bracket. If you are thinking about $295,000 or $310,000, if you price your house at $295,000, you are more likely to be the best value in the lower bracket, rather than one of the less attractive ones in the higher bracket.
3. Overpricing Leads to Criticism of the house
Buyers comparison shop. When they look at multiple homes within a price range they are going to compare the quality and features of similarly priced homes. When you overprice your house, you are making buyers compare it to houses that are worth more and it will fail that comparison. Perhaps in that higher price range all the other houses have 2 full baths and your has only 1.5. Why pay as much for your house when they can get that extra half bath for the same money? They won’t. And your house will sit on the market.
By overpricing your home, you stand the chance of actually losing money in the long run, as your home lingers on the market. (This is where I would promote the idea of using the expertise of a local real estate agent (like myself!) as a trusted adviser.
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Hi, I'm John Thomas, and I am a full-time/full-service Realtor® at eXp Realty in Atlanta Georgia. I was born in Chicago, grew up in Elmhurst. I attended York High School and Loras College. I have a B....
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Of the many questions we field from homeowners thinking of selling their homes, the most frequent starts with “What’s it worth?” Of course they’re referring to their home’s value, but