Signs That Your Home Is Priced Too High
If you’re selling your home it’s imperative to understand that pricing it correctly from the beginning is a critical step to get it sold – not only for the highest price possible but, also in the shortest time possible. The most common reason a home doesn’t sell is because it’s overpriced.
Overpricing a home is ultimately going to result in less money in your pocket. An overpriced home will sit on the market and become stale inventory that buyers will simply just pass over. If you make the mistake of overpricing your home it’s important to recognize it as soon as possible and then correct it right away.
How can you tell if your home is overpriced? If you’re selling your home and are experiencing any of the below signs your house might be overpriced.
Your home is priced higher than comparable homes- study similar homes that have sold and closed in your neighborhood. If your home is priced higher than the homes that have closed with similar sizes and features you’re likely overpriced. Generally speaking, in most neighborhoods home values will be relatively consistent and close to one another.
You’re getting any showings on your home- no showings or even few showings typically means a price adjustment is needed. Buyers and their agents will also know what homes are selling for in your neighborhood and if your house is priced well above what the comps show they’re likely to just pass on seeing it all together.
You’re not getting any offers- in most real estate markets a home that is priced correctly should receive at least one offer within the first 2-3 weeks of being on the market. If your local real estate market is currently in the midst a seller’s market, you should expect an offer on your home within the first couple days on the market – sometimes even hours, if it’s priced correctly. If you’ve been on the market more than a couple weeks and haven’t had an offer it’s a sign your home is overpriced. There are of course certain types of properties that may take longer than a couple weeks to receive an offer but, that’s fairly rare. This scenario typically exists on a luxury home or waterfront property.
Pricing is a critical piece of the real estate puzzle. If you price your home correctly it will sell in a relatively quick timeframe. However, if you choose to overprice your home it will either not sell or it will sit for months until finally receiving an offer and that offer isn’t going to be for full list price. The proper pricing strategy from the day your home goes on the market will result in not only a timely sale but, one that achieves you the highest price possible.