Historically, this is the time of year when more buyers are looking for homes. However, there are now more homes for sale, as listings are increasing every week—and home prices and mortgage rates are reducing the number of buyers in some areas. But because there are fewer homes for sale than there are buyers in most of the country, it remains a seller’s market. Even so, you still need to be smart when setting your asking price. Coming onto the market at too high a price can cost you money in the long run.
The downside of overpricing. Virtually all buyers first see a home online, and what hits them are the photos and the price. If you’ve priced your listing too high, you may immediately turn people away. That’s because even in a market where there are more buyers than homes for sale, buyers won’t pay much attention to a home with an inflated price. They do not want to pay more than they have to, especially today. So, if buyers think your house is overpriced, they may just write it off without scheduling a showing—and those who do visit the house will never wind up making an offer. This could leave your home sitting on the market way longer than similar listings.
If that happens, you’ll have to drop the price to rekindle interest. This is not ideal. Some buyers see a lowered price as a red flag. They think something must be wrong with the house if it didn’t generate enough interest to be sold as soon as comparable homes. They will ignore it and focus on more recent listings. In addition, dropping the price often encourages buyers to come in with lower offers than they would have if your asking price had been in line with the market to begin with.
What all this means is that overpricing your home can result in selling it for less than you would have gotten if you had priced it at the start closer to its real market value.
How we help you set the right price. Our knowledge of the market guides our research in determining the current value for your home. Our experience in real estate helps us factor in your home’s condition, the value of the upgrades you’ve made, and up-to-date information on what comparable homes are selling for in your area. We use all this information to arrive at the correct listing price.
Just remember—the right price will bring in more buyers, make it more likely you’ll see multiple offers, and should get your home sold in much less time.
Thinking of selling or buying a home? Please text, call, or email us to learn about your best options today!
