The Risk of Overpricing a Home
Price your home correctly as soon as it goes active on the market. This is the sizzling hot time when most buyers are looking at it. You want to create demand and urgency so buyers are anxious and quick to place great offers. And you’re more likely to attract multiple offers.
Here’s what could happen if you overprice.
- You loose a bunch of buyers. They’re scared off.
- Your home sits on the market longer.
- If it goes under contract, your home may not appraise for the sale price.
- Then, the buyer’s lender may not give them a mortgage.
- Then, you might have to cancel the contract or reduce the sale price or hope the seller has the cash difference to close the deal.
- Then, you’ll go back on the market with a reduced price.
- And now you have less negotiating power.
- Buyers will wonder why the contract cancelled. They’ll ask what’s wrong with the home and perceive it as an opportunity to place a low offer.
Some interesting stats from Zillow…
“We found that in the U.S. as a whole, homes that sold more or less as soon as they hit the market had sale prices that were only about 1% below list price, while homes on the market for about 2 months sold at 5% below. And homes listed for the longest amount of time (11 months on average) fared worst, selling at 12% below list price.”
Yep, that sounds right from my experience. When I meet with sellers, I’m armed with data on recent comparable sales and neighborhood trends. I know the inventory that sold and the homes active on the market. Although I am certain of the correct listing price, it’s up to my seller to decide this. So sellers….make the right choice. Don’t overprice.
Thinking of selling? Start with a home valuation.
Or let’s have a chat. 305-898-1852
