Maybe the largest mistake I've seen from people who are wondering how to sell their house, or why their home won't sell, is a simple one to correct - don't get greedy and overprice your house from the beginning of the process. Some sellers take that gamblers chance that their home REALLY IS worth more than what they've been told, only to put themselves in a position where their house sits on the market longer than it should. Let's take a look at some of the pitfalls of overpricing your home:
- Homes priced lower will sell more quickly: Look around your neighborhood, are there homes similar to yours? If there are homes in your area that priced lower than yours they will sell faster. You did those sellers a favor by pricing yours above theirs, thus making their similar home look more attractive. Do your homework, find out what other homes in your area are selling for, AND what they've historically sold for.
- Your home will stay for sale longer: The goal of anyone selling their home is to sell it as quickly as possible, no one puts their home up for sale hoping to sit on it for weeks and months. It is better to price your home right the first time than to keep adjusting the price every few months which will just make potential buyers want to negotiate even more because they will see the price has been dropping and/or will figure you're more desperate the longer your house is for sale.
- You will lose interest and potential buyers: Folks who might be potentially interested in your home based on the looks or the amenities may completely overlook it because it doesn't fit into their budget or because they feel you might be difficult to deal with since you have an inflated sense of value.
- Extra mortgage payments: What if you find the house of your dreams before your house sells? You'll either have to pass on your dream home and wait, or you'll have to pay a house payment on two homes until your house sells. Who really wants either of those options?
- You get desperate and lower your price: The longer your house sits, the more likely you'll be to take less money. Conversely, potential buyers might wonder if something is wrong with your home since it has been available for so long and only offer less.
- A buyer might have trouble getting a loan: Let's say you find someone who agrees to pay your inflated price? A lender might not be as willing to give them a loan if they don't agree with your asking price.
Do your research, talk to an agent who has a track record of pricing homes right and selling them quickly and get their opinion, and don't let greed become your enemy. Our homes are important to us, and we all like to think our things are better and nicer than the guy's next door, but getting your home priced competitively from the start will expedite the process.
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