Why You Should Not Over Price Your Home
Here are three reasons why shouldn’t over price your property.
- Fewer Buyers
- You Just Help Sell the Competition
- Frustration for You & Your Agent
Fewer Buyers: You just over priced your home for qualified buyers that are looking for a certain price range. When you alienate these buyers they never see your home. Buyers today are very educated when searching for homes and they know the value of properties. If they don’t you can be sure their agents know and they will advice them that your property is overpriced. This of course results in less buyers viewing your home. Less buyers less views and less or no offers.
The Goal: Get as many qualified buyers to view your home and price has a lot in attracting them. So you need to price it right the first time.
You Just Help Sell the Competition: When buyers compare your over priced property with others in the same neighborhood they feel good when they make an offer on your competitors house because now they feel like their getting a deal. Buyers as I mentioned are educated when it comes to finding a home at the right price because they don’t buy the first home no matter how much they like it. If it’s overpriced they can’t afford.
Frustration for You & Your Agent: Some agents will take your overpriced home for many reasons but a good agent understands that for the home to sell at top dollar and quickly the home has to be priced right the first time and never overpricing it is pricing it right. Most sellers feel their home is worth more than everyone else is but a honest agent will tell them the truth. When a agent speaks up it saves you the seller and your agent from being frustrating when the home doesn’t sell.
When I mention overpriced were talking tens of thousands overpriced not just thousands.
My advice when it comes to pricing your home right the first time is to you really do your homework and find out what other comparable homes have sold for and if the market is rising, leveling off or is it in a down cycle. If you are set in your over pricing and your agent recommends a more realistic price you need to get in your car and view your competition to see what buyers see. This will help you understand where you realistically need to be in pricing your home.
When You’re priced right the first time you will have more buyers viewing your home and the more buyers viewing the better chance of getting your asking price and even better having multiple buyers fighting to win your home and possibly making more. It’s not unusual to get thousands more when you price it right the first time.