In a seller's market
Is It A Good Idea To Overprice My Home?
Hey everyone! It’s a seller’ market and you may want to overprice your home! Good idea? Let’s break it down in less than a minute!
-Buyers are savvy.
-Your home could sit on the market longer
-You might have to drop the price
-Can lead to lower offers
Buyer's Are Savvy
Buyers are savvy. They know the market and will skip over homes that are priced too high. A simple internet search will tell anyone what homes are going for in your neighborhood.
Your Home Could Sit On The Market
Your home could sit on the market longer, which makes it look less desirable. When a home sits on the market, it sends a message to buyers that it’s probably overpriced, or worse something is wrong with it.
You Might Have To Drop The Price
When you drop the price, you often end up with less than if you would have priced it correctly in the beginning.
Can Lead To Low Offers
When a home has sat on the market and has had a price drop that sends a signal to potential buyers that they can negotiate on price and/or terms that heavily favor them instead of you, the seller.
Even though we are in a seller’s market, houses that are overpriced are not selling nearly as fast as homes priced at market price. Also, the majority of homes purchased have a mortgage. This means an appraisal will be done by the lender and if the home does not appraise then the lender will not loan above the appraised value giving buyers the option to purchase at the lower amount or backing out of the sale altogether. Wasting valuable time your home was off the market.
I hope you found this helpful. If you have more questions feel free to reach out. For other popular real estate related Q&A’s check out my YouTube channel, my website, or my social media platforms.