The process of selling a house begins with setting the asking price for the property. Although it may seem lucrative to start by setting a high list price, it can actually harm your chances of selling the property in a number of ways. Let’s take a look at four ways that overpricing your home can make your home sale more difficult.
1. You’ll Miss Potential Buyers:
If your home is overpriced, you’re going to have a tough time connecting with your target buyer market. Why? Because most buyers put in a max high price into their criteria as they search for properties. While some may include homes a little above their budget to capture overpriced properties, many won’t.
2. Your Listing Will Stand Out as Overpriced:
Remember that buyers are looking at dozens of homes in your area that have very similar criteria. If a home is way overpriced, a well-researched home shopper will be able to spot it from a mile away. While buyers usually do expect to do some negotiating, they don’t want to waste time fighting for a fair price with the property owner – especially in a market with solid inventory.
3. Buyers Will be Turned Off by Negotiations:
If a buyer is interested in your home but realizes that they’re going to have to negotiate to get the price into their comfort zone, odds are they’ll end up with another house. It’s difficult to plan a home purchase working with theoretical numbers that may or may come to fruition at the offer table.
This is, perhaps, the most obvious reason it’s damaging to overprice your home. If you’re in a rush to sell, you’re going to have a much better experience if you price it right the first time. If your home is priced too high and you’re forced to do multiple price drops to generate buyer interest, it’s going to take longer to sell.
Now that you understand the risks involved with overpricing your home, make sure you set a fair price when you’re ready to list to increase the odds of selling your home quickly.