The Mistake of Overpricing Your Home

By
Real Estate Agent with DITOMMASO REAL ESTATE

The most important decision to set the initial listing price of a home. Sellers want to get as much for their home as buyers are willing to pay. However, when determining the price, don't make the mistake of overpricing.   It could prove costly, it could slow down the sale, and/or make other homes look like a good value by comparison.

One trap many sellers seem to is base their price is on emotion.  After all, their home has been special to them.  Perhaps they made changes and improvements over the years.  But, you need to ask them, how important are those changes to a potential buyer?  It is easy for them to think their hone is worth more than their neighbor's or more than the current market price.  If they overprice their home their home it might bring buyers who will compare their home to other homes within the same price range and walk away disappointed. There maybe another home with more amenities or be in better condition.  At the same time, you eliminate potential buyers who are looking for homes priced in the range of their home's true market value.

Another challenge you face with overpricing is less initial and diminished interest in the home.  Usually, a home receives the most activity during the first weeks it's on the market.  If their home is priced with similar homes in their market, it may discourage potential buyers who believe they can get a better value somewhere else. 

 

Comments (2)

Gaye Granice
Robert Defalco Realty - Staten Island, NY
Associate Broker
We all know the best way to price a home is at market value, now we have to figure out a way to convince all those unrealistic sellers.
Feb 18, 2008 12:42 PM
Frank Giunto
Touch of the Brush - Staten Island, NY
Thanks Valerie , this information is true especially with my clients who call on me to faux finish their home so they could get a better price. I always remind them that first I would love their business, but anyone who is interested in their home may not be interested in their way of decorating. You're right when you say that many people think they could get so much more because their home is the way they like it. When in reality they could only get what the market allows. Thanks again for another informative blog. -Frank Giunto, Touch of the Brush@msn.com
Feb 21, 2008 11:57 PM