Overpricing is dangerous! It is probably the number one deal killer to a real estate transaction. You are hoping that someone will buy your home on an impulse. But how likely is that when you have fewer buyers looking at your home to begin with because it is in the wrong price range? It doesn’t happen! Instead, you make the other homes on the market look better to the few buyers who did come to see your house. Either they have seen homes like yours at a lower price or they have seen properties in your price range that offer more amenities, finishes or size. In either case, the likelihood is that the buyer will go for the property that offers better value when compared to your home.
When you put your home on the market, it is very important to understand the implications of overpricing, namely:
- Overpricing creates old inventory. Is that where you want to be?
- Any delay in selling because of overpricing is drawn out even further by the suggestion that there is something wrong with the property because it has not sold.
- The longer the time on the market the bigger the discount to get it sold, thus giving potential buyers the idea that they can get the house for an even bigger discount than both agent and seller ever
Don’t forget. Your listing not a bottle of wine that gets better and more valuable with age. Think of it instead like a bottle of milk with a very limited shelf life. When was the last time you paid a premium for a three month old bottle of milk?
When an agent goes along with a seller and overprices the listing so the seller can negotiate with the buyer, the Realtor has done a terrible wrong to the seller. You can’t negotiate with a buyer who doesn’t materialize. You can’t negotiate if you are out of the price range and no buyers come. This is a major reason why the overpriced property sits so long!
If you find yourself in this position it is best to get back to the proper price range for your home in order to sell it. Please don’t wait. Those extra days on market are not helping you! It is very hard on both the agent and the sellers part to admit the mistake and to make the change, but don’t be the irrational seller. Your Realtor has already let you make one big mistake by overpricing your property. Don’t compound it by staying overpriced!
If you are thinking of selling your home and would like to work with a Realtor who understands the market and its momentum, please give the Lise Howe Group a call at 240-401-5577 or email us at lise@lisehowe.com. We have been helping clients just like you for over twenty-five years! We look forward to helping you!
