The Pitfalls of Pricing Your Home Too High
Everyone wants to sell their home for top dollar, but overpricing your home comes with many pitfalls.
Pricing your home correctly is key to having a successful sale. There are many pitfalls of pricing your home too high.
For one, pricing your home too high can decrease demand drastically right out of the gate. The first few days your home is on the market are very important to the sale of your home. All of the “Coming Soon” marketing that we do generates interest in the home before it comes on the market. However, if the home comes on the market and it’s not the right price, that can really affect the number of showings you will get in your early days on the market.
Overpricing your home is a detrimental decision to the overall sale of your home. There is no chance that you will get a buying frenzy or multiple offers, which can drive up the sales price of your home (when it’s priced correctly).
Overpricing your home can also increase the time your home spends on the market. As your home sits on the market, buyers begin to suspect that the home isn’t priced correctly or that something is wrong with the home. As a result, buyers think they have more leverage to negotiate with you when it comes time to submit an offer.
You will also have to do more price reductions if you overprice your home. Statistically speaking, the more price reductions you have, the less money you will get for your home in the long run. We have some pretty compelling data that we can share with you proving that homes with fewer price changes sell at a higher price per square foot and closer to asking price.
Finally, overpricing your home causes a lot of unnecessary anxiety. Our job is to tell you what your home will sell for. A lot of sellers want to “try” a different price, and we can empathize with that. However, our goal is to get as much money for your home as possible. We will show you how to do that with our comprehensive market evaluation.
So, don’t lose any leverage in negotiations by overpricing your home. If you have any other questions about pricing your home or about the home selling process in general, give us a call or send us an email. We would be happy to help you!