Things to Know

The Pitfalls to Pricing Your Home Too High

Putting your home on the market is a major life decision, and there are plenty of things to consider before approving the final listing. Is everything up to date? Is this the best time of year to try to sell a home? But one of the biggest decisions you will make when listing a home is setting the asking price. Most sellers will want to sell their home as quickly as possible, but they also want to attract the highest possible offers. While it might seem like a good idea to test the market by starting with a higher asking price, this strategy can backfire on several levels, resulting in a slow sale at a low price.

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Consider the current market conditions when listing your home. Check what similar properties have been selling for - and how quickly - and price your home just under that value. An experienced real estate professional will be able to help you make these decisions. Make sure you do your research before settling on the person you want to represent you. An inexperienced real estate agent might suggest that you price your home higher than the market will support, causing your home to sit on the market and lose the interest of potential buyers. An experienced real estate professional will understand the market trends and be able to offer you personalized advice according to your specific situation.

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If your home does not receive any offers within the first 30 days of listing, this is a very reliable indicator that the property is overpriced and that you should lower your asking price immediately to spark buyers’ interest. The longer your house sits on the market, the less interest it will garner. Buyers will assume that there is something wrong with the property and will be reluctant to schedule a showing. There must be a major problem if no one else wants to buy it.

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The corollary issue here is that the longer a house sits without any serious offers, the more desperate the seller will usually become. After a certain point, the seller will often jump at any semi-reasonable offer, even if it is below the home’s true market value. After all, any offer is better than none. This can result in the home selling for a much lower price than it might have otherwise.

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Typically, the homes that sell for the most money are those that are listed for slightly under market value. These homes will attract the interest of a wider range of buyers, increasing your number of potential showings. A home that is shown often is more likely to attract offers, and competing offers is the fastest way to drive up the price of your home.

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Contact me today to learn more about how to price your home!

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