• October 30, 2017

Overpricing Your Home: The Dangers

Money from Home 8

Overpricing Your Home: The Dangers

It’s understandable. Your home is your biggest asset and your greatest investment. So when it comes time to sell, you want it to garner in a worthy return. However, while it can be tempting to list your home at a price somewhere above its fair market value in order to allow wriggle room for bargaining, this tactic can backfire. As you’ll learn, overpricing your home can actually contribute to it being sold for a much lower price than you think it’s worth—or not at all.

Asking For Too Much
There are several critical negative effects of trying to price your home too high. For one, it will deter buyers from even considering your property. This is because good real estate agents can tell when a home is overpriced, leading their clients elsewhere. Even a buyer without a real estate agent will see that the home you are selling is far pricier than other homes in the area.

Another disadvantage of overpricing your home is that it will take far longer to sell. In real estate, you generally want to sell your home within the first several months of listing it—failing to meet this time frame will reflect very poorly on your property and may even cause the listing to expire. Buyers pay attention to the amount of time a home is on the market; they will offer less for a home that seems desperate to sell, so you could end up selling the property for even less than what it’s worth.

Additionally, the longer you’re on the market, the more likely it is that the housing market will shift on you. Another result of overpricing is that your home may fail to turn up on internet search results because people are seeking homes at a fair value and not your inflated price. This is why it is so important to temper your asking price. All of these effects ultimately lower the chance of securing the sale.

Pricing Smartly
So how can you prevent overpricing your property? The best way is through the advice of a skilled real estate agent. Agents have a wealth of experience that allows them to analyze current market trends and price your home based on its fair market value.

It’s not a bad idea to price your home a little below its max value just to appeal to a broader pool of potential buyers. Remember, selling your home within the ideal time frame will ensure you receive an offer worthy of its value, and the first impression you make on the market can make your home immediately attractive to buyers.

Keep in mind that the improvements you’ve made on your home don’t necessarily increase its price as much as you’ve paid to improve it, and always have a plan for reducing the price just in case the market changes. Adhere to your agent’s advice, and avoid the temptation of asking for too much. In the end, it’s not worth it.

Stress is one of the largest concerns when selling a home. Staging, managing finances and documents, and simultaneously juggling the rest of your life can be completely draining. However, one thing is certain about selling your home: it’s a lot easier when you have a solid real estate agent to handle it. Remember, No-One Works Harder to Sell your Home more than Joe! Contact Joe today by calling 813-908-7293 or visit https://josephlewkowicz.com/