There's a natural tendency to overvalue our homes when we decide it’s time to sell. After all, it's human nature to value our possessions highly, especially if we've worked hard to make them what they are today. However, it's possible to sabotage our own sales by sticking to a price we believe is fair but that the market doesn't support.
Consider the following dangers of overpricing your home to help you stay grounded and avoid any irrational impulses.
Buyers Will Avoid Looking at Your Listing if It Is Too Expensive
Good real estate agents will be able to tell right away if you've listed an overpriced home and will advise their clients not to even look at it. Buyers who aren't represented by a real estate agent are also less likely to consider your home because they're on a strict budget and are looking for properties with lower asking prices.
You may believe that because you've made numerous improvements to your house, the purchase price is reasonable. Real estate evaluation, on the other hand, does not operate in this manner at all. There are renovations with a high return on investment and others with little to none of a return.
Another problem sellers encounter is the misconception that they can always adjust their price down the road. The decision to do this is a bad one. The first few days after a home is listed for sale generates the most interest. After that, buyer demand dwindles, so pricing your home too high means you've already lost out on the best chance of getting requests to view your home.
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You've Teamed up With a Bad Real Estate Agent
Every now and then, a strategy is employed to trick sellers into accepting a listing price that's way too high. Some unethical real estate agents use this strategy to gain unwary clients by making unrealistic promises of huge profits to those customers. Making a mistake like this can doom a sale from the start, whether it's intentional or the result of the realtor's inexperience. To avoid falling for a less-than-stellar game plan, home sellers should be on the lookout for these types of agents.
Your Home Has Been on the Market for an Excessive Amount of Time
With an overpriced home, there's a good chance it will sit on the market for an extended period, reducing your chances even further. Buyers won't be interested in your home if they hear it's been listed for months or re-entered the market several times. If you don't get any showing requests within the first few weeks of your home being on the market, that's a bad sign.
Potential buyers may attempt to negotiate a lower price with the seller. It's in our nature to do things like this. If a seller is desperate, he or she may accept the first offer that comes along.
Don't let your house go unsold during this critical time period!
People interested in buying should take a look at these properties for sale in Caledon, ON.
Important Tip: When it comes to selling a home, time is of the essence, so the asking price must be competitive with the current market standards from the outset. There is a good chance that many buyers will see your listing if you price it in line with recent sales data.
Educating yourself on the pitfalls of overpricing your home now will help save you time and money when it comes time to sell.
The listing and selling process will be much easier if you work with a team of great real estate agents, such as Team Lorraine Mondello Realtor, who will use the right strategies to attract buyers and will save you time and money in the long run with a competitive listing price.
Contact Team Lorraine Mondello today!