Overpricing a home is the biggest mistake a seller can make. Asking a high price for your home says more about you than it does about your home. It may show you value your investment, and that you have cared for the home and kept it updated and in good repair. But, if the price is too high compared to other similar homes, it can make you appear unrealistic and unwilling to negotiate a fair price.
Here are some other reasons sellers should avoid overpricing their home:
Buyers shop within a price range that’s based on advice from their lender, or one where they feel comfortable. If they’re searching on the MLS, they will typically look at homes they can afford and may miss seeing the page where your home is advertised because it’s out of their price range. So, even if you’re willing to take less for your home, overpricing it may prevent some buyers from even seeing it listed.
Buyers who can afford to pay the asking price of your home will simply compare your home to others in the same range. They will quickly find out that other homes have better locations, more square footage, or more upgraded finishes than yours and for the same price.
Typically, you’ll get fewer showings and receive only low-ball offers. You will need to lower the price in order to increase interest and showings.
Even when your home is priced fairly later, the first impression of the home being originally overpriced has already been made. This reflects poorly on the seller because other agents and their buyers don’t want to deal with a seller who is unrealistic. They may have already jumped to conclusions about you and your home—that you’re unreasonable, greedy, out of touch with current market conditions, or you’re heavily in debt, upside down on your mortgage, or otherwise in some sort of trouble—which may not even be the case.
The longer your home is on the market, buyers will think you’re desperate to sell and may offer less than market value. It’s far better to make a good first impression on the market—that your home is offered at a fair price because you’re a reasonable seller who understands your home’s value and current market conditions.
The bottom line is that most buyers will never pay more for your house than it appraises for and a lender is willing to finance. So, in the end, you will probably have to lower the price anyway to reach closing—all you’ve done is delayed the process and incurred additional holding costs for the home. You’re always better off pricing your home so that you can get as close to your asking price as possible. Doing this will help ensure your home sells quickly and for more money.
Everyone knows that curb appeal is one of the most important factors when selling a home. Homes general sell quicker and for a higher price when there is good curb appeal. It allows you to attract more buyers, more interest, and more offers. When you’ve already done the work and the house looks great, it shows buyers that you take pride in your home and that it’s been taken care of. The increased interest and demand can drive the price up further.
First impressions count! Home buying is an emotional process. People want to “connect” with a home and have a good feeling about it—from the moment they first drive up, to walking throughout your home, and as they are leaving. Their experience starts with the curb appeal, which sets the tone for their entire visit, either positive or negative. Don’t forget to “welcome” your guests with a new front door mat!
Remodeling projects and the quality of materials may make a difference in resale. If you’re planning to update your home’s curb appeal or remodel its interior, ask me for guidance. I can tell you which improvement projects typically provide the most value upon resale in this market.