April 20, 2024
Why Overpricing Your House Can Cost You
If you’re trying to sell your house, you may be looking at this spring season as the sweet spot – and you’re not wrong. We’re still in a seller’s market because there are so few homes for sale right now. Historically, this is the time of year when more buyers move, and competition increases. That makes this an exciting time to consider putting up a for sale sign.
While conditions are great for sellers it remains ultimately important to be strategic when it comes time to set your asking price. In the long run, pricing your house too high at the outset may actually end up costing you in the final analysis.
The Downside of Overpricing Your House
The asking price for your house sends a message to potential buyers. From the moment they see your listing, the price and the photos will make the biggest first impression. And, if the price is too high, prospective buyers may take a pass. As an article from U.S. News Real Estate says:
“Even in a hot market where there are more buyers than houses available for sale, buyers aren’t going to pay attention to a home with an inflated asking price.”
Especially with today’s challenging affordability and associated market conditions, no homebuyer wants to pay more than they must. Many are already feeling the pinch on their budget due to ongoing home price appreciation and today’s mortgage rates. And if buyers think your house is overpriced, they may simply write it off without even stepping foot in the front door, or won’t make an offer if they think it’s priced too high.
When this happens, it’s going to take longer to sell. Ideally sellers don’t want to face the need for a price drop to try to re-ignite interest in the house. Why? Some buyers will see the price cut as a red flag and wonder why the price was reduced, or they’ll think something is wrong with the house the longer it sits. As an article from Forbes explains:
“It’s not only the price of an overpriced home that turns buyers off. There’s also another negative component that kicks in. . . . if your listing just sits there and accumulates days on the market, it will not be a good look. . . . buyers won’t necessarily ask anyone what’s wrong with the home. They’ll just assume that something is indeed wrong, and will skip over the property and view more recent listings.”
Your Agent’s Role in Setting the Right Price
Instead, pricing your home at or just below current market value from the start is a much better strategy. So, to find that ideal asking price, lean on the pros. A licensed real estate professional with expertise and access to the essential information needed to research and predict the current market value for your home is your best bet.
They’ll factor in the condition of your house, any upgrades you’ve made, and what other houses like yours are selling for in your area. Additionally, they’ll use all of that information to find your target number. The right price should attract more buyers and also increase the likelihood of multiple offers. Most importantly, when homes are priced right, they tend to sell quickly.
Bottom Line
Even though receiving top dollar when you sell is critical, setting the asking price too high may deter buyers and slow down the sales process.
Let’s connect to determine the right price for your house that can maximize your profit and still draw in eager buyers willing to make competitive offers.
Courtesy of: Keeping Current Matters