Why Overpricing Your Home Is Such a Big Mistake
One of the biggest mistakes you can make as a home seller is overpricing your home. Here’s why.
What happens when you overprice a home? While you might think that it’s a good idea to leave room for negotiation, it isn’t. We’ve discovered that buyers and their Realtors tend to write off overpriced homes. They’ll see the price and ignore you until you adjust it.
When we introduce your home to the market, there’s no better chance for you to attract buyers. We send it out to buyers all over the world and they get excited when they see it. Our belief is that if you price a home right, it will sell for what it’s worth.
Over the last five years, we’ve studied the market and have seen what happens when a home sells in the first two weeks. On average, the home ends up selling for 98.9% of its list price. The longer it takes the home to sell, the lower the percentage of the list price that you’ll get. Even just a month after you list, it drops another 4% of the asking price. After five months on the market, you’re only getting 88% of your asking price on average.
When you price right and get multiple offers, there’s no way you can lose. You get to pick your buyer instead of the other way around. If a home is underpriced, the market will let you know in the form of multiple offers and bidding wars. It’s a strategic move to find the right buyer and maximize your sale price.
When we’re representing buyers, we flip it around and encourage our buyers to look at the homes that have been on the market for more than a few weeks. We get to go in there and get great discounts on properties.
If you have any questions for us about the importance of pricing your home correctly or anything else related to real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.