If you're a seller and your home hasn't sold in the market we're in - a seller's market - please take a few moments to read this excellent blog post by Nina Hollander . Although Nina is in North Carolina, the same holds true for Boca Raton and south Florida.
If your home hasn't sold in what is arguably a seller's market with more demand than supply and home prices increasing monthly, maybe you should check your price. The most common reason that homes don't sell is due to price. At the right asking price, location and condition don't matter. Keep in mind that in June 54% of homes sold in under 30 days, nationwide. Is price the reason that yours didn't sell in 30 days or less? Statistics show that a home priced within 5% of its actual value is more likely to sell within 30 days than the same home overpriced by 10%.
If your home has been languishing on the market and isn't selling, here are...
15 Telltale Signs That Indicate Your Home Is Priced Too High
- Showing activity and internet traffic on your home has been slow.
- Showing activity and internet traffic have been good, but you've received no offers.
- You've received offers, but they are much lower than your asking price.
- Feedback on your showings indicates that prospective buyers and their agents think your home is priced too high.
- Feedback on your home is highly critical about your home's condition... it's just another way of saying your home is overpriced.
- Yours is the highest priced home in your neighborhood.
- Newly listed homes in your neighborhood are selling quickly, while yours continues to sit.
- Your home is priced for unique amenities or upgrades that are out of the norm for your neighborhood or don't have broad appeal for the typical buyer for your neighborhood.
- Your neighbors' homes that came on the market after yours did sold, while yours continues to sit on the market and showings dwindle.
- You selected your listing agent based on who quoted the highest price (and now you're paying the price) instead of the agent who provided a top marketing plan and reasonable pricing strategy.
- Your home's asking price was determined without a comprehensive comparative market analysis or based on what you thought you need to get "out of" your home's sale or because you thought you'd "test" the market because you were in no rush to sell or didn't "really" have to sell.
- Your home is competing with nearby new construction (buyers do pay a premium for brand new) or you are competing with your own builder in your neighborhood which has not yet been fully built out.
- Your agent is hosting open houses and you have little to no traffic. Or are prospective buyers attending, but making comments that they've seen other homes in the area that appear to be a better value?
- You have been reducing your home price, but are now just "chasing the market" and these incremental reductions somehow never really catch up with the market.
- Your offered compensation to buyer/selling agents is too low and agents are not rushing to show your home.
Did you know that pricing your home just 10% above market value dramatically cuts the number of prospective buyers that will even see your house? See the chart below which measures the impact of asking price on visibility and the percentage of buyers who will look at property when it's overpriced.
Dangers Of Overpricing Your Home
- First and foremost, your home doesn't ever sell and your listing expires. You continue to relist and rack up the cumulative days on market.
- Buyers start thinking there is something wrong with your home because it's not selling, while others do, leading to either no offers or low-ball offers.
- Buyers start thinking you may be desperate to sell and make lower offers than they would have earlier on in the sale process. (Homes that sell quickly after first listing sell at a higher price and closer to asking price.)
- Showings of and/or inquiries about your home fall off even more dramatically.
If you're in a seller's market and your home is not getting offers, it may just be time to revisit the pricing strategy with your agent.
If you are wondering if your home is priced right for today's market, contact me for a no-obligation home value analysis.
If you are considering selling your home in the Charlotte metro area, I would love an opportunity to earn you business, exceed your expectations, and to prove to you that:
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Disclaimer: Nothing in this blog article is to be construed as legal advice, tax advice, or financial advice. For legal advice see an attorney. For tax advice or financial advice see a tax attorney, certified public accountant, or other qualified professional.