How an Inflated Listing Price can Hurt You
One of the biggest mistakes home sellers make is not listing their home at the right price. You might think it’s not a big deal. After all, it is better to ask too much than not enough, right? Not to mention, you can always reduce the price. However, an inflated listing price can do a lot more harm than you might think.
- Buzz for the Wrong Reasons – When your house goes on the market it is fresh and exciting. Buyers and agents are talking about it, but if you overprice, that buzz will be for the wrong reasons. Instead of being excited to view the property, they will be saying, “What were they thinking?”
- Slow Sale – You might not be in a hurry to sell because you have a couple months before you have to move, but when six months go by, and you have already reduced the price multiple times, you will understand just how big of a mistake you made.
- Scare People Away – If you think buyers will be eager to just check the house out anyway think again. Most buyers have busy schedules that they are already rearranging to shop for a home. They have no desire to waste any of their valuable time.
- Helping Your Neighbors – Usually, helping your neighbors is a great thing, but in this case, it’s really not. Although, they are sure to appreciate it if your home is listed significantly higher because it will make their home look like a better deal.
- You Look Dishonest – Everyone knows that you know you are overpriced. Reducing the price is not going to make you look any better.
- The Stale Factor – Realtors call homes “stale” when they sit on the market for a while. Even with a reduced price, new buyers will see how long it has been listed and assume something is wrong with it or someone else would have already bought it.
- Isolate Buyers – When you price high, you put your home in the wrong category. People actually looking for a home like what you have are searching for a specific price point. Those looking to pay the price you are asking are shopping for “more” house than you have to offer. You just don’t fit in.
- Lender Approval Issues – You may get lucky and get a bid from someone new to the area who doesn’t know the home is overpriced. However, they will know when the appraiser comes back with a smaller number and their lender won’t approve what you are asking.
Getting the price right will help you sell faster and experience a smoother transaction. Overpricing increases stress and results in lost time and money. When it comes to preparing for a quick home sale, do your research and price your home correctly.