Why Over Pricing Your Home is a Terrible Idea.
So you decided to sell your home. Great!! You contact an agent to get the ball rolling. Fantastic! Then you say the one thing that every agent fears - "Let's price it high and see what offers we get" Overpricing might seem like a smart move, but it’s actually a recipe for disaster! It’s likely to scare away potential buyers, and that’s the last thing we want. Pricing a home is like an art, and each property has its unique value. The buyer and seller will eventually agree on a price, but that doesn’t mean you can wing it.
Here are some reasons why overpricing can cost you dearly:
- The Agent-Seller Battle: Many sellers overprice their homes because they’re too focused on their own property. They don’t realize that agents live and breathe the property market, and they have a better idea of what’s going on. Sellers often think agents just want to price their homes low to make a quick buck, but that’s not true. Agents know how to price homes correctly so that they sell for the best price.
- First Impressions Matter: Marketing is everything! It’s the first thing potential buyers see, and it can make or break your listing. If you price your home too high, you’re likely to miss out on a lot of potential buyers. But if you price it right, you’ll attract more buyers and get a better deal.
So, remember, pricing a home is an art, and it’s important to do your research and get advice from a real estate agent. They can help you price your home correctly and make sure you get the best possible deal.
Reasons Why Overpricing a Property Can Backfire
- Price it too high: If you price your property above its market value, it’s a surefire way to lose potential buyers. They’ll see other, newer, and more attractive properties that are priced more competitively. And the longer your property sits on the market, the more likely it is to fall off buyers’ radar.
- Market changes: Property markets are always in flux, and new information can quickly shift the market dynamics. Maybe there’s a new highway coming through town, or a major renovation of the local mall is planned. Or maybe there’s an economic downturn or political uncertainty that’s making buyers hesitant to invest. All these factors can make it harder to sell your property at a high price.
- Price reductions: If your property doesn’t sell quickly, you might have to consider reducing the price. If you don’t price your home competitively, you’ll likely have to lower the price to attract buyers. And even if you do manage to sell your property at a lower price, buyers might still feel like they’re getting a bad deal.
- Neglecting the property: Over time, owners can get lazy and neglect their homes. Weeds can grow back, dust bunnies can accumulate, and the property can start to look outdated. This can make it harder to sell your property at a high price, and buyers might even offer a lower price if they notice the condition of the home.
So, there you have it. Overpricing a property can lead to a number of problems, including losing potential buyers, market changes, price reductions, and neglect. It’s important to price your home competitively and to keep your home in good condition if you want to sell it for the best price.
Closing advice to sellers
If you’re serious about selling your home for the best price, make sure your pricing is spot-on from the start. But if, for some reason, the initial marketing price is higher than what your real estate agent suggests, have a backup plan to quickly lower the price and use the reduction as a marketing strategy!
Remember, a serious seller is always more appealing to buyers. To find out more about the importance of pricing your home correctly, CLICK HERE.