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Overpricing your Home: Why it can cost you MORE in the long run!
Selling your home is a significant decision that requires a lot of thought and consideration. Once you have reached the decision to sell your home, choosing the right realtor and the right list price will be your most crucial choices you will need to make. While it might be tempting to list your home more than what the comparables show, overpricing your home can have serious negative consequences. Here are some of the reasons why:
Buyers Wont Even Look:
When you overprice your home, you risk alienating potential buyers right from the start. Having the right list price from the first day it’s on the market is KEY to getting your home sold quickly and efficiently. When you overprice your home, you’re automatically cutting off a large portion of potential buyers, as most buyers have a budget in mind and will only look at homes within their price range. If your home is overpriced, it won’t show up in the search results for the right buyer pool. These buyers are also working with skilled realtors who can smell an overpriced listing from a mile away. Realtors have access to market date and can quickly identify homes that are overpriced or fairly priced. If your home is overpriced, open houses and showings will be minimal as your home won’t even make it onto their list of homes to view and you will miss the opportunity to showcase your home to all these potential buyers.
You will be on the Market A LOT Longer:
Overpricing your home can result in it staying on the market for an extended period of time with no activity, no matter how beautiful your home is. The longer your home stays on the market, the less appeal it will have to potential buyers and just helps to make your competitors listing look more attractive. Buyers will compare the price of similar homes, and if your home is overpriced, they will naturally gravitate towards homes with a more realistic price tag. Also, keep in mind that the longer your home is is on the market, the more money it is costing you to keep up with the mortgage payments, taxes, utilities, and maintenance costs resulting in selling your home costing YOU more money!
Create a Stigma
The days on the market (DOM) is a metric that indicates how long a home has been listed for sale. When a home stays on the market for an extended period of time, buyers may start to wonder if something is wrong with is, This can create a stigma, which can make it even more challenging to sell your home as buyers will start to lower the value of your home before even walking in. The DOM will heavily reflect what a buyer will offer, usually resulting in an asking price MUCH less than your asking price. Buyers will also less likely to even consider the home after you have had to make the decision to lower the price, and if they do consider it at that point - they may assume that you are now desperate and may try to negotiate an even LOWER price then they originally thought.
Appraisal Issues:
Even if you’re lucky enough to get an offer at your high asking price, the appraisal process could reveal that the property is not worth that much. This could lead to the buyer not getting approved for a mortgage, or you could be forced to lower your price to meet the appraised value.
These are a few of the main reasons how over pricing your home can negatively impact the successful sale of your property. When deciding on the right price for your home, don’t make this decision on your emotion - look at the market stats provided by your realtor! Choosing me to sell your home, I will provide you with a comparative market analysis (CMA), which will show you the prices of home that have recently sold in your neighbourhood. We will go over each home in detail and how it compares to yours before deciding on a realistic price for your property. The right price from the start is essential to getting your home sold quickly and efficiently, so you are not missing out on potential buyers or creating a stigma that something is wrong with your home.
Have more questions about buying a home or what happens after making an offer? Reach out to me today! No question is too small or silly.
CENTURY 21 Heritage House Ltd. Brokerage
INFO & SERVICES
CENTURY 21 Heritage House Ltd. Brokerage
505 Park Road North, Suite 216, Brantford, ON N3R7K8
(519) 758-2121
INFO & SERVICES
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