When it comes time to put your house on the market, it’s wise to look to a trained real estate professional to help you with things like advertising and—more importantly—pricing! It’s not surprising that the number one reason why houses don’t sell is because they are overpriced. When deciding what price to list your home at, it is important not to be emotional about the decision. You need to keep in mind the end goal, which is to sell the house. Here are a few more reasons why overpricing could be devastating to selling your home.
It Takes Too Long to Sell
If you’ve priced your home on the high side of the actual market value, there is a good chance it is going to be sitting on the market for quite some time. That’s not a good thing. One of the first questions potential homebuyers ask their realtor when they first view a property is “how long has it been on the market?” The main reason homes sit on the market for months at a time is because of the price. However, it could also give buyers the impression that there could be something else wrong with the house and it’s not even worth their time to look at. Also, once it sits on the market for a few months, it may not come up in property searches as often since most realtors and potential buyers are looking for newly listed homes.
Scares Away Potential Buyers
A lot of homebuyers out there are working with trained and experienced real estate agents when looking for their next home. Pricing your home higher than market value will have the realtors looking right by your house without a second glance. And they should. It’s their job to find their buyers the right house at the right price, and many people are looking for a deal.
Appraisal Issues
Let’s give you the benefit of the doubt and say you find the one person out there willing to pay well over market value and give you exactly what you’re asking for the property. In your mind you’re thinking the war is over. However, what may be the biggest obstacle is still yet to come. If the buyer is getting financing from a bank, all lenders require you have an appraisal on the property. And even if the buyer is paying cash sometimes they will want to have an appraisal to make sure they are paying fair market value for the home. The appraiser will use comparable homes that have sold in the area to the fair market value of the home, and once his number comes back lower than the sales price, good luck getting anyone to pay your asking price.
At Title Junction we care about helping you stay informed throughout your real estate transaction. Have questions? Give us a call at 239.415.6574.
In case you missed it, check out our last Title Junction post: 6 Steps to a Perfect Fort Myers Real Estate Closing