Overpricing a Home Can Be More
Damaging Than You Think
When it comes time to put your house on the market, it would be wise to look to a trained real estate professional to help you with things like advertising and more importantly, pricing! It’s not surprising that the number one reason why houses don’t sell is because they are overpriced. When deciding what price to list your home at, it is important not to be emotional about the decision. You need to keep in mind the end goal, which is to sell the house. Here are a few more reasons why overpricing your home could be devastating to selling your home.
It Takes Too Long To Sell
If you have priced your home on the high side of the actual market value, there is a good chance it is going to be sitting on the market for quite some time, and that’s not a good thing. One of the first questions potential homebuyers ask their realtor when they first view a property is “how long has it been on the market?” The main reason homes sit on the market for months at a time is because of the price. However, it could also give buyers the impression that there could be something else wrong with the house and it’s not even worth their time to look at it. Also, once it sits on the market for a few months, it may not come up in property searches as often as most realtors and potential buyers are looking for newly listed homes.
Scare Away Potential Buyers
A lot of homebuyers out there are working with trained and experienced real estate agents when looking for their next home. Having your home priced higher than market value will have the realtors looking right by your house without a second glance, and they should. It is their job to find their buyers the right house at the right price. Also, given the housing crash we just went through and all of the foreclosures and bank owned properties out there bringing home values down, everyone is looking for a deal. Buyers these days are not looking to pay top dollar for their new purchase.
Appraisal Issues
Let’s give you the benefit of the doubt and say you find the one person out there that will pay well over market value and give you exactly what you are asking for the property. In your mind your thinking the war is over, however, what maybe the biggest obstacle is still yet to come. If the buyer is getting financing from a bank, all lenders require you have an appraisal done on the property. And even if the buyer is paying cash sometimes they will want to have an appraisal done to make sure they are paying fair market value for the home. The appraiser will use comparable homes that have sold in the area to the fair market value of the home and once his number comes back lower than the sales price, good luck getting anyone to pay your asking price.
Title Junction is a full service real estate title company serving the area of Fort Myers, Cape Coral and the entire state of Florida since 2005. The company handles a number of real estate title services for both commercial and residential properties. Employees of Title Junction can also act as a witness in courtesy closings as well as an escrow agent or a notary public. Please contact Jennifer Ferri of Title Junction, LLC for further information @ 239-415-6574 or www.title-junction.com
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