Why Overpricing Your Home Could Cost You

If you’re trying to sell your house, you may be looking at this spring season as the sweet spot, and you’re not wrong. We’re still in a seller’s market because there are so few homes for sale right now. And historically, this is the time of year when more buyers move, and competition ticks up. That makes this an exciting time to put up that for sale sign.

However, while the conditions are favorable for sellers like you, you should be strategic when setting your asking price. That is because overpricing your home can be costly in the long run.

The Downside of Overpricing Your House

The asking price for your home conveys a message to prospective buyers. The price and photos will make the best first impression when they see your listing. And, if it’s priced too high, you may turn people away. As an article from U.S. News Real Estate says:

Even in a hot market where there are more buyers than houses available for sale, buyers aren't going to pay attention to a home with an inflated asking price.”

That is because no homebuyer wants to pay more than necessary, especially today. Many are already feeling the pinch on their budget due to ongoing home price appreciation and today’s mortgage rates. If they believe your home is overpriced, they may write it off before even entering the front door, or they will simply refuse to make an offer.

If this occurs, it will take longer to sell. And, ideally, you do not want to have to consider lowering your asking price in order to rekindle interest in your home. Why? Some buyers will interpret the price reduction as a red flag and wonder why it was reduced, while others will believe something is wrong with the house the longer it sits. As an article from Forbes explains:

“It’s not only the price of an overpriced home that turns buyers off. There’s also another negative component that kicks in. . . . if your listing just sits there and accumulates days on the market, it will not be a good look. . . . buyers won’t necessarily ask anyone what’s wrong with the home. They’ll just assume that something is indeed wrong, and will skip over the property and view more recent listings.”

Your Agent’s Role in Setting the Right Price

Instead, pricing it at or slightly below current market value from the start is a far superior strategy. So, how do you determine the ideal asking price? You rely on the professionals. Only an agent has the knowledge required to research and determine the current market value of your home.

They’ll factor in the condition of your house, any upgrades you’ve made, and what other houses like yours are selling for in your area. And they will use all of that information to determine the target number. The right price will bring in more buyers and make it more likely you’ll see multiple offers too. Plus, when homes are priced right, they still tend to sell quickly.

Bottom Line

Even if you want to sell for top dollar, setting an unrealistic asking price may discourage buyers and slow down the process.

Allow us to collaborate to determine the best price for your home so that we can maximize your profit while also attracting motivated buyers willing to make competitive offers.

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