When preparing to sell your home, the primary concerns often revolve around how quickly it will sell and the price it will fetch. In a seller’s market, with tales of bidding wars and cash offers, the temptation to set a high asking price can be strong. However, even in favorable market conditions, overpricing your home can significantly hinder your ability to sell promptly and at a good value. To find out how much to sell your home for, contact Berkshire Hathaway HomeServices at (310) 373-0021 for help.
Missing Your Market
Most homebuyers begin their search online, setting specific price ranges to narrow down their options. If your home is priced above their maximum budget, it won’t appear in their search results, meaning potential buyers in your target market may never see your listing. Additionally, buyers typically aim to get the most value within their budget, preferring the top options in their price range. Thus, it’s better to position your home as a standout in a lower price bracket rather than a mediocre choice in a higher one.
Playing the Numbers
Selling a home involves a numbers game: more potential buyers mean a higher likelihood of receiving offers. Overpriced homes attract fewer showings, both online and in person. Real estate agents emphasize the importance of showings to generate buyer interest. If your home is overpriced, it may struggle to attract the necessary attention, slowing down the entire selling process and causing frustration for both you and your agent.
More Showings = More Offers
New listings generate the most interest as they are seen as the bright, shiny new objects in the market. However, the longer a home sits unsold, the less attractive it becomes. If you eventually have to lower the price, buyers may suspect there is something wrong with the property. Price reductions can lead to a downward spiral, potentially resulting in the home selling for less than its worth.
Additionally, the longer your home remains on the market, the more costs you incur. Ongoing mortgage payments, utilities, and other fees can add up, making it more challenging to recover these expenses when the home finally sells.
Be the Bright, Shiny Object
Even if you manage to find a buyer at an inflated price, there’s still a risk during the closing process. Lenders will order an appraisal to determine the home’s market value. If the appraisal comes in lower than the selling price, the lender may deny financing, forcing you to relist the home. Relisting can create negative perceptions among buyers and their agents, who might assume there are issues with the property.
Avoid Last-Minute Disappointments
Set a realistic price to prevent appraisal issues and ensure a smoother closing process, reducing the risk of having to relist your home.
Overpricing your home might seem like a good strategy in a hot market, but it can backfire in several ways. To avoid missing out on potential buyers, extended market times, and last-minute sale disruptions, it’s crucial to price your home correctly from the beginning. For professional advice on pricing your home accurately, contact Berkshire Hathaway HomeServices at (310) 373-0021. Let us help you achieve a quick and profitable sale without the pitfalls of overpricing.