Here are 5 reasons to not overprice your home:
More Days on the Market
First and foremost, and overpriced home isn’t going to sell as quickly as a correctly priced home. For reasons discussed below, overpricing your home brings in fewer buyers. When you price high you may end up losing money because of extended mortgage and maintenance payments. The financial cost is minimal when compared to the stress of having your home on the market for an extended period of time.
Good Realtors ® who are working with buyers can quickly spot an overpriced home and will keep your potential buyers away. While you may be open to negotiate lower, many buyers and buyer’s agents don’t want the hassle. Don’t scare buyers away with an overpriced home.
Priced out of Search Results
In the digital age of home searching, buyers won’t see houses even if they’re just outside of their price range. Instead of inviting buyers into your home, you’ll be keeping potential buyers out. When searching, buyer’s and their agents set maximum price points. So if your agent says your home is valued at $390,00 and you decide to list at $410,000 you won’t appear in searches for a maximum price of $400,000.
Potential Failed Appraisals
Say you set your list price $20,000 over what your agent recommends and say a buyer puts in an offer for that price. In this situation you’re setting yourself up for a failed inspection down the road. This can put the whole deal at risk costing you a lot of time. In a busy market with low-inventory this isn’t an impossible situation. Set your list price carefully to avoid having to go back on the market.
Going on and off the market is an easy way to make buyer’s suspicious of your home. If you price over your home’s value and lose a deal due to a failed appraisal you’ll have to go back on the market. If you accept an offer and the buyers back out after inspection, you have to go back on the market. Ping-ponging costs you a lot of time and money and isn’t worth it.
Contact your Realtor ® today for more guidance selling your home!