Setting your price too high is a major error you should avoid while selling your home this year. Overpricing may appear to give you leverage in negotiations or to increase your profit, but in practice, it frequently backfires.
According to Realtor.com, one in five sellers, or nearly 20% of all sellers, must lower their asking price in order to sell their home. And being one of them is not what you desire. Here's why getting off to a bad start can cause problems and how to prevent it.
Overpricing May Eliminate the Right Buyers
Due to current housing prices and mortgage rates, buyers are already straining their finances to make a purchase. Therefore, they aren't thinking, "I can negotiate," when they see a house that is too expensive. They're more inclined to ignore your residence completely and think, "Next." According to a National Association of Realtors (NAR) article:
“Some sellers are pricing their homes higher than ever just because they can, but this may drive away serious buyers . . .”
Additionally, you will lose the opportunity to bring them through the door if they ignore your listing. You don't want that because fewer showings translate into less opportunities to get an offer.
Houses Marketed Too Long Develop Buyer Questions
The other problem is this. Overpriced homes typically remain on the market for longer. Additionally, buyers begin to question what's wrong with a house the longer it sits on the market. Does the house itself have a problem? Are you challenging to collaborate with? That additional time raises questions, even if the cost is the sole concern. According to U.S. News:
“. . . setting an unrealistically high price with the idea that you can come down later doesn’t work in real estate . . . A home that’s overpriced in the beginning tends to stay on the market longer, even after the price is cut, because buyers think there must be something wrong with it.”
You will then be forced to reduce your price in order to generate interest. However, there is a drawback to that price reduction: buyers can interpret it as yet another warning sign that there is a problem with the house.
Price Your Home Correctly (the first time)
So, how can we prevent all of these headaches? It's easy. Choose a local real estate agent that is well-versed in the market and will be candid with you about the best price for your home.
You don’t want to partner with someone who just agrees to whatever number you throw out there. That’s not an expert who’s going to get you the best results.
An agent who bases their price recommendation on their experience is what you desire. Real-time data from your local market will be used by the correct agent to help you determine a reasonable price that will draw in buyers, draw attention, and still allow you to walk away with a healthy profit. Someone who has experienced that situation and done it effectively. You wish to work with that agent.
Bottom Line
Keep in mind that if the price isn't appealing, it won't sell. Work with Chris Pataki who understands how to market it appropriately rather than setting the price too high (for wiggle room to negotiate) and turning off buyers.
Together, we can ensure that your home is listed at the proper price, attracts interest, and sells.
by keepingcurrentmatters.com
 
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