The Pitfalls of Over Pricing Your Home

By
Real Estate Agent with Better Homes and Gardens Real Estate Main Street Properties Florida

Sad House Price

 

When it's time to sell your home or condo , it's very easy to get caught in the overpricing trap. After all, who doesn’t want top price for their home? We all know that prices have dropped dramatically in recent years. Given that, it's logical that the asking price you set could be higher than "fair market value."  Unfortunately, you probably won't realize it's too high until much later.

 

Here are just a few of the disappointments you'll be facing with an overpriced house:

 

Showings of your home will probably be slow.  The public recognizes overpricing.  People buy by comparison.  They compare square feet, bedrooms, baths, garages, year home was built, location, etc.

 

Some prospects who are attracted may be the wrong ones. They will be attracted because they're looking for a home priced the same as yours – but are disappointed because they expect more features or high quality amenities  

 

Very few buyers will make an offer on an overpriced home. Why?  Even if you accept their lower offer, they aren't getting a bargain since the final price is probably no less than "fair market value."

 

Your home will help buyers make a favorable decision on other homes that are priced fairly. Do you really want to be the example that drives people elsewhere?

 

If you do find a buyer at your price, their mortgage application could be rejected because it doesn’t appraisal to the price you have set; the house simply doesn't meet the standards that the price indicates.

 

I know this all sounds somewhat bleak, so what can you do to solve the pricing issue? Work with an experienced and knowledgeable professional who knows the market in your area. Take advantage of the research and advice your real estate agent can offer, and you'll be on your way to setting the right price for your home to sell.

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Pamela Crews

Better Homes and Gardens Real Estate | Main Street Properties

Pensacola, FL

Cell: 417 576-4787 | Office: 850 912-4767

pam@betterbeachhomes.com

BetterBeachHomes.com

Serving the coastal communities of Pensacola

 

 

 

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Rainer
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Donald Reich
Prudential Centennial - New Rochelle, NY

IF the listing is priced right, it will be shown, and sold quickly. If it is overpriced, it will just sit there. No further explanation necessary!

Sep 10, 2011 05:13 PM #1
Rainer
73,650
Pamela Crews
Better Homes and Gardens Real Estate Main Street Properties - Perdido Key, FL
Real Estate Services In Pensacola Florida

So true Donald.   One can overcome location, condition, timing on the market and any other issue if priced correctly. 

Sep 11, 2011 03:27 AM #2
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Rainer
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Pamela Crews

Real Estate Services In Pensacola Florida
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