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The Hidden Cost of Overpricing your Home

One of the toughest things about selling your home is setting the right asking price. It’s important to find the correct balance. Otherwise, overpricing your home could bring yourself dealing with the following disadvantages.

It Creates a Bad First Impression

When selling your home, first impressions matter.

An overpriced home can create a bad first impression even before buyers check out the property.

Today, buyers have access to various online resources that allow them to run comparables in an area to determine what prices to expect. If your listing sticks out because it’s overpriced compared to neighboring properties, they might decide to give it a miss.

Even if buyers do decide to tour the property, they may notice that there are no features or amenities that justify the price and move on to something else. Bad first impressions result to a lack of interest and offer on your home, leading to the next disadvantage.

It Will Spend a Long Time on the Market

New listings generate the most interest. The older a listing is, the less appeal it has.

When looking at listings that are older than two or three months, most buyers will start wondering what’s wrong with the property.

Could it have a major flaw that will cost a lot to repair?

Is there something wrong with the neighborhood?

Or perhaps the seller is stubborn about dropping the price?

Buying a home can be a long process, and buyers are unlikely to want to make the process even longer by complicating themselves with a home that could, potentially, be problematic.

Buyers Might Not Find Your Listing

When browsing listings, buyers always have a plan:

  1. They’re looking for a home in this neighborhood;
  2. With this many bedrooms and baths; and
  3. Within this or that price range.

Using comparables, they can get an idea of what the average price for their dream home should be.

So if your 3-bedroom home is overpriced compared to other 3-bedroom homes in the area, the search engines will not display it because it’s outside the buyers’ price range. Similarly, if your home has been on the market for several months, it will be swallowed by newer listings.

So folks, stop overpricing your home and start strategizing the perfect price! Watch this video to learn more about why you shouldn’t overprice your home:

Want to know how to strategically price your home? Contact us and we’ll run a free home valuation for you.