Here are some dangers of overpricing your home.
If you’re thinking of putting your house on the market, you may be tempted to list it at a high price just to see if you can get it. Think again! It is important to price your home appropriately from the day it goes on the market; this is critical to getting it sold quickly and for the best price.
Research has shown the first two weeks on market is critical. Many homeowners want to list their homes based on what they paid for it, or to recoup the upgrades they did while living there. In reality, your home is worth only what the market will bear.
If you price your home too high, some potential buyers won’t even look at all, while others will simply walk away without making an offer.
When interviewing realtors, beware! You may be tempted to pick the real estate agent who suggests the highest price for your property. However, the realtor who provides the best comparative market analysis and explanation of how your home should be priced will more likely sell your home quicker and for a higher price than someone who tells you only what you want to hear.
It’s tough to close a real estate transaction with an accepted offer from a buyer on an over-priced listing. This is due to the fact that buyers continue to look at the competition and they quickly realize they have overpaid which can result in buyer’s remorse and canceled escrow. Or the home appraisal doesn’t come in at the offered price and your property has now been off the market for weeks, which will force you to lower the price to allow that escrow to close.
These are just some reasons why you should consider what the market is doing when it comes to pricing your home. When overpricing your home, you are essentially hoping to win the “home seller’s lottery”, meaning you are hoping that someone will come along and pay an unreasonable amount of money for your home, despite all the facts and comparative information.
Over pricing your home hurts the overall value of the home, while also sacrificing your time as you wait and learn that overpricing was a big mistake.
Take your time to choose the right real estate professional. Someone local and that is knowledgeable with home values in your community. With your realtor’s advice you are more likely to have a quick and smooth transaction.
Remember the homes priced appropriately are the homes that sell first.
Estate Realty Group is located at 28100 Bouquet Canyon Road in Saugus. For more information, please call Nicole Stinson at 661-816-4234 and visit www.nicolestinson.com.