Three Common Reasons Homeowners Overprice Their Homes

By
Home Builder with Long Island Cash Home Buyer

Priced to sell

The three common reasons homeowners overprice their homes are:

1. emotion,

2.ego.

3.pride.

Keep this in mind when setting the price of your home. Learn The Worse Home Selling Mistakes. 

 

You have a lot invested in your home, both financially and emotionally. With such a hefty asset, it's understandable that you'd want to make sure you're positioned to get the highest sales price possible. If you price your home to high, however, you run the risk of potential buyers passing it over.

 

The key is to finding the true market value of your home.  Find out how market value is determined. 

 

Sometimes it is difficult to establish an accurate market value; in fact, it can be very easy to overprice your home. Your house is a source of pride so it is natural to think it's as valuable to others as it is to you. You may want to get more for your house than your neighbors did, despite the fact that they sold 5 years ago in a stronger market. Or possibly you've lived in a home for a long period of time and it is difficult to accept that the neighborhood is not now as desirable as it once was.

 

The market value of your home is determined by recent sales of homes similar to yours. When you are ready to put your home on the market  to contact us and request a "Free" Comparative Market Analysis which will provide you with recent home sales similar to yours.

 

Paying attention to our Comparative Market Analysis will position you to intelligently select the correct market value for your home. Doing so will save you thousands of dollars and also help eliminate many of the negative emotions that go along with selling your home.

 

Learn Why Overpriced homes sell slower and for less.

 

We have been helping sellers sell their homes since 1984 we have the experience and expertice to assist you in selling your home in the most proficient manner. Contact us when you're ready to sell your home  for a free in-depth consultation.  Don't make the worst home selling mistake. 

 

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Rainmaker
4,103,050
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Beth, these are great pointers for potential Sellers to read, as if you overprice the home, it sits ont he market.   In the end you may get even less than the fair market value!

Dec 20, 2013 10:16 PM #11
Rainmaker
1,948,662
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

"Well the insurance replacement value is three times the number you gave me...."

"And above and beyond the real market value, I want to pay for the four year college expenses, of four kids, have that piled on top of the price I will settle for...."

Had one old duffer ask me how high he would have to list the place for it not to sell. His kids pestering him about getting closer to them, to sell out and move down now that Mom was gone. It made it easier for the kids, but he figure total new surroundings for him, stuck at home there and everyone gone, out and about doing their life. So no thanks. Sticking here at home. But just to appease them wanted to nose bleed not really going to sell price tag on the place.

Dec 20, 2013 10:31 PM #12
Rainmaker
3,127,433
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

I think you got the reasons down pat! Of course, there are also people out there who owe more than their home is worth today and think some fool will come along and overpay!

Dec 20, 2013 10:38 PM #13
Rainmaker
1,378,717
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Richard and Beth, overpricing a home is the biggest mistake a seller can make. Agents who take overpriced listings are doing their clients an injustice.

Dec 20, 2013 10:49 PM #14
Ambassador
3,983,135
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Beth, I also think sellers get stuck on principle and a number. They tend to think their home is better than the neighbor's and therefore is should sell for more.

Dec 20, 2013 11:01 PM #15
Rainmaker
2,463,464
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Meaningful and professional counseling plus discussion is at work here...Yes to it

Dec 20, 2013 11:09 PM #16
Rainer
96,912
Jeff Fritzson: Frisco Real Estate Pro
Jeff Fritzson Real Estate, Ebby Halliday Realtors - Frisco, TX
Your Success is My Focus!

Really excellent information and reasoning. What frustrates me are the agents that use this and shop a listing. Very unfair to the clients and the industry as a whole. Thanks for sharing this post.

Dec 21, 2013 12:34 AM #18
Rainmaker
296,549
Jeff Stevens
Berkshire Hathaway HomeServices New Mexico Properties - Las Cruces, NM
Jeff Stevens, Associate Broker

Good list. The one thing I'm hearing over and over is - "I'm not going to GIVE it away!"

Dec 21, 2013 01:13 AM #19
Rainmaker
772,992
David Alan Baker Laveen & South Phoenix Realtor
Keller Williams Realty Phoenix - Laveen, AZ
Your local Expert

Lets not forget about those sellers how listen to relative "x", who has no experience in real estate - but seems to know better than comparables or your realtor.

Dec 21, 2013 02:11 AM #20
Rainmaker
690,645
Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL
Call the "CHAMPION" for all your real estate needs

Excellent advice for home seller's pricing the home is one of the biggest factors for home seller's. Thanks for sharing.

Dec 21, 2013 02:58 AM #21
Ambassador
1,251,436
Jason Crouch
Austin Texas Homes, LLC - Austin, TX
Broker - Austin Texas Real Estate (512-796-7653)

Great post. I am still amazed when sellers won't listen to reason, but it seems that the pocketbook often takes precedence over logic.

Dec 21, 2013 05:56 AM #22
Rainmaker
974,759
Beth and Richard Witt
Long Island Cash Home Buyer - Huntington, NY
Long Island Cash Home Buyer 516-330-6940

These are awesome comments... I think I've got enough juice here for another "Why your house didn't sell post"... Great stuff... Thank you all...

Dec 21, 2013 06:11 AM #23
Rainmaker
1,219,187
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Excellent post Richard & Beth.  I agree that the comments can be the catylst for another post. 

Merry Christmas

Dec 21, 2013 06:47 AM #24
Ambassador
1,470,875
Toni Weidman
Sailwinds Realty - Trinity, FL
20+ Years Selling Homes in New Port Richey, FL

All good points, Beth; we know that because we are agents and deal with it all the time.

Dec 21, 2013 09:42 AM #25
Rainmaker
1,560,731
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

It's important to get the pricing right.  Some sellers will lose precious market time by going with someone who might not be realistic.  You are going to price it right!  Sellers should give you a call.

Dec 21, 2013 10:10 AM #26
Rainmaker
976,418
Aaron Hofmann
Atlanta Communities - Smyrna, GA
aka Mr. Smyrna Vinings

Homes are emotional and all the blood, sweat and tears that went into their home artificially inflates the "market value" of their home

Dec 21, 2013 06:50 PM #27
Rainmaker
5,420,150
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is very good advice for prospective home sellers. Sadly, some will not follow the advice of their real estate professional.

Dec 21, 2013 09:06 PM #28
Rainmaker
331,048
Bruce Swedal
Denver, CO
Denver Real Estate

Probably missed at least one reason they get overpriced by sellers - greed...

Dec 21, 2013 11:09 PM #29
Rainmaker
2,385,078
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
800-309-3414 - Pensacola, Pace or Gulf Breeze, Fl.

I have found if you don't take the over priced listing you will be out because there is always someone to take it and the seller will usually lower the price and get it sold

Dec 22, 2013 03:36 AM #30
Ambassador
1,599,375
Florida Tolbert Team Keller Williams Advantage
Keller Williams Advantage III Realty in Lake Nona - Orlando, FL
Keller Williams Land Division Specialist

I have made it a policy to not agree to take the overpriced listings unless they will benefit me in some way such as Hey I know this is the most expensive hoem in the neighborhood and I totally understand if this is the not home for you, however, I have 3 others near here adn the sellers are much more reasonable in their price.  Shall we go see them now?

Dec 22, 2013 11:11 AM #31
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Beth and Richard Witt

Long Island Cash Home Buyer 516-330-6940
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