The Risks Of Overpricing Your Home For Sale
Nothing can slow down the process of selling your home faster than overpricing it. It is the number one reason that homes on the market don't sell. We specialize in selling homes in the area and are well versed in what it takes to sell a home for the highest dollar in the shortest amount of time.
Reducing The Price and The First 30 Days
Trying for a higher price and reducing it later is an option that sellers very often ask. However, in the first 30 days of a home being listed is typically when you see the most buyer traffic. Pricing the home high then dropping down later could mean that you are missing out on the best, most serious potential buyers right out of the gate.
Other Agents Showing The Home For Sale
Some agents won't show listings that are way overpriced. When inventory is higher, agents show homes that are in the potential buyers' price range which meet current fair market value. When a home is overpriced, it sits on the market for a longer time. This can work against you and for your competition, meaning potential buyers will see your property as a selling point for other properties. You don't want buyers to be saying that they can get the same house for less money. And finally, the longer a house sits also means that buyers will wonder whether or not something is wrong with the house. There are fewer buyers interested at this point as well and you lose some of your leverage because of the length of time the property was on the market.
Lenders and the Final Sale Price
Lenders today are more cautious than ever and home loans are always going to be based off of appraisals. Appraisals are based on comparable properties that have been sold in the immediate area so in order for your buyer to get a mortgage it is going to need to be at a price that is justified by the bank. Very often when a house goes on the market overpriced it ends up selling for less than market value as buyers eventually throw in lower offers to see if the seller will bite.
As your real estate professionals we will work with you to price your home accurately. Contact us today if you are in the market to sell your home.