Special offer

The Perils and Pitfalls of Overpricing your Home for Sale

By
Real Estate Agent with Midwest Premier Realty, Gurnee IL 224-321-0699

It is fair to say that most of us strive to achieve the highest price we can when we sell our home. However, overpricing the home can have costly consequences that may not be immediately obvious at first glance. 

An overprice property typically sits on the market stagnating and quickly becomes old news. It become less and less likely to attract buyers interest in making an offer at (or even close to) the asking price – In effect, soliciting low-ball offers. 

When a buyer compares an overpriced home with others priced at market value, they are more likely to pursue the ones that are priced reasonably – In effect, the over-priced home helps to sell the other homes! 

Buyers may have difficulties securing financing to buy your house if the appraisal is not in line with the purchase price, so even if a buyer falls in love with your house and offers the elevated asking price, the deal can still easily fall apart, frustratingly setting you back to square one having wasted your valuable time.

If you fall into the trap of reducing the price repeatedly in an attempt to re-kindle interest in the property, you will most likely find the astute buyers (and their agents) perception to be that the house was initially mispriced and that the seller is becoming desperate/motivated to sell (bringing even lower offers), or that the buyers will simply wait for the next price reduction…and the next one for a better deal. The net effect of all of this is that the seller ends up either not being able to sell the property, or having to accept a LOWER price than they would have otherwise received had they priced the property correctly in the first place. 

If you are an investor trying to sell an overpriced investment property or a homeowner trying to sell a home having already moved to a new one, the holding costs could soon become substantial. Consider all the extra loan payments, utility costs, property taxes and capital tied up that you can’t use elsewhere when your property is sitting out there vacant on the market for months.

These are some of the warning signs of overpricing:

· No other homes have recently sold for the same price.

· The current comparable active listings (your competition!) are priced below your listing price.

· Comparable listings at the same price as yours have expired and did not sell.

How much is my house worth?  

It’s worth what a buyer is willing to pay for it in TODAY’S market. Unfortunately, the hard truth is that many properties are worth less today than they were two or three years ago.

How can I determine how much my property should be listed for?  

Although we can’t change the nation’s economic situation, you can make well informed decisions on pricing you home correctly so that it sells quickly and for the best price. Contact a competent real estate agent. It’s their job to help you determine this. They have access to all of the appropriate tools and comparable sales data needed.

To ensure that as many potential buyers as possible see your home you should advertise your well priced property as widely as possible. An MLS listing and cutting-edge online marketing are an absolute MUST to effectively sell your house in today’s marketplace.

Posted by

David Hill

David Hill

If you’re thinking about selling your home, Click Here for a free home valuation.

If you’re looking to buy a home Click Here to sign up and receive property listings that meet your criteria as soon as they hit the market.

If you'd like to search local listings of homes for sale in Chicago and the surrounding suburbs yourself Click Here.

 

    David Hill Gurnee Realtor

  Email me

Visit Our Website

 

Flat Fee MLS

Buyer Services

Short Sale Help

 Premier Full Service

 

 

 

Google+    FacebookTwitterLinkedIn

Midwest Premier RealtySearch For Properties

Comments (0)