I just read a great article published by the real estate site Trulia that discussed the “7 Deadly Sins of Overpricing.” In the article, the author pointed out some extremely logical reasons to price your home right to begin with. Often times, I will hear sellers say, “We want to leave a little room to negotiate on the price.” Believe it or not, that thinking—as logical as it may sound—could actually cost you more money in the long run. So what could happen if the price ISN’T right?
1. No Showings
Today’s buyers are so much more informed about current market trends. If your home is overpriced, buyers will just skip it and move on to the next one…never even calling to set an appointment to look at yours, much less making an offer.
2. Branding Problems
Most real estate agents check out the details of new listings as soon as they hit the market to see if the new listing may be a fit for one of their buyers. Agents are very much in-tune with market conditions, and if your house is branded as “overpriced,” they will (and should) let their clients know.
When a house juts sits and sits on the market, people begin to wonder what’s wrong with it, even though it may be in pristine condition. It becomes a “stale” listing and can get an unwarranted bad reputation.
4. Selling the Competition
Overpricing your home makes the competition look like a bargain! And you certainly don’t want to watch your neighbor put a Sold sign on their house before yours!
5. Tougher Negotiations
Buyers tend to want to come in and make a “lowball” offer to a seller whose house has been on the market for a long time…if they make an offer at all! Starting too far apart on price can often make negotiations much more difficult.
6. Lost Opportunities
Buyers have a maximum price range for their home search, and if your house falls just above that maximum dollar amount, the potential buyers may never even see your home to begin with.
7. Appraisal Issues
Let’s say a buyer did want to go ahead and pay an inflated amount for your house. The fact is that over 90% of buyers these days use some sort of financing to purchase a home. If your house won’t appraise for the inflated purchase price, there is a strong possibility that the deal will fall through.
Believe it or not, Waco is not immune to overpriced listings. At Bentwood Realty, we try to educate our sellers and help them price their homes competitively. Because of this, we are currently selling homes an average of 37 days faster and for 2.5% closer to the asking price. (according to MLS data)
Thinking of selling? Give us a call to find out how we can help get your home sold faster!
254-300-4800 | info@BentwoodRealty.com