10 Reasons Not to Overprice Your Home!
Seller Not Serious- By overpricing, the buyers say never mind as this seller is just testing the market and not truly serious.
Few to No Showings- Agents and Buyers are both pretty aware of the market prices so if your home is overpriced, they will just not show it at all.
Limits the Number of Buyers- By overpricing home you cut out good buyers that are qualified below that amount. Eventually if you reduce the price, many of these buyers have already found a home.
Failed Negotiations- Buyers might put in a lower offer, but if the seller is overpriced, the gap will typically be too far apart to agree upon. Homeowners that are locked into a set price typically will not come down even with the good advice of their Realtor.
Will not Appraise- If it is overpriced, it will not appraise and then the deal will fall through.
Sells the Competition- Buyers will look at 10-20 houses before putting in an offer. So if you are too high, they will think the house down the street is priced better and has nicer upgrades. Your overpriced home will make others look better.
Higher DOM on the Market- Buyers are always looking for new listings on the market so your house will have a high number of days on the market which brings up red flags with buyers.
Price Reductions- Eventually your agent will have to convince you to reduce the price. Now you are just following the market instead of being competitive with the others in the area.
Continues to Lose Equity- In this crazy economy the market keeps dropping so if you overprice and it stays on the market an extended number of days, its value will continue to go down. This could mean the difference between a standard sale and a short sale.
Home Never Sells- Homeowners will frequently get so frustrated that they decide to take the house off the market and not sell at all or let it go into foreclosure instead.** This is very serious and will affect the homeowners credit and keep them from being able to buy a new home.
This is what you want..... SOLD!
Homeowners, please call me for a Comprehensive Market Analysis to assist you with marketing your home for sale and getting the best price possible. Buyers, if you are planning to purchase real estate, let me assist you in finding the right home. Google me at Kristin Hamilton, Keller Williams Realty, Redlands, CA.
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