Overpricing Can Lead to Disappointment
While the real estate market in all parts of America isn’t necessarily as grim as many would have us believe, it is certainly a buyer’s market. However, there are many homeowners looking to sell their property who refuse to acknowledge this. If you do not price your property fairly (in accordance with the housing market, the area’s crime and poverty level, and the property values of surrounding homes), you can be in for grave disappointment.
You will get fewer looks. You will find that responses to your advertising will be fewer and farther between. This means your property could stay on the market longer, and property that has stalled on the market is a definite deterrent to buyers.
You will attract the wrong buyers. For a sale to proceed, the buyer’s wishes and the home’s features must agree. An overpriced home will entice buyers shopping in a certain price bracket, but with far higher expectations than your property can meet.
It’s not good starting ground for negotiations. Prospective buyers will be less enthused to negotiate because, by talking the buyer down on the price, they are not necessarily getting a deal. They are probably just getting a home at full market value. They expect a deal, especially with the current buyer’s market.
It could mess up your closing If your house is priced above the appraiser’s estimate, it could prevent the buyers from successfully getting the mortgage loan they need.
The comparison factor An overpriced home makes a great comparison for less expensive homes with more features. There’s plenty of great deals out there, so do your research before determining your price. It’s better for you, not your buyers, to be first to identify the great deals offered by the competition.
