When selling your home, one of the most important, and hardest, decisions you will make is how to price it. Many people want to test the market and see if they get lucky with a buyer whose desperate to live in their neighborhood. Others have lived in the home for many years and have a nostalgic attachment that makes them unrealistic about what their home is worth to others. Regardless or the situation, sellers must be very thoughtful about the price they decide on. Here are some of the top reasons not to overprice your home:
- Your target buyers won't even see your listing. Even a home that is overpriced by $10,000 will likely be missed by many prospective buyers, as price is generally the first parameter they'll use when conducting their search. If your home is valued at $450,000, but you want to list it at $460,000 so that you'll have some room for negotiations, any buyer that also wants to land at $450,000 will miss your property because your asking price will exceed the maximum price they've set in their parameters.
- You'll waste the critical first 30 days on the market. The best chance you'll have of selling your home will be in it's first 30 days on the market. This is when a home will get the most attention from buyers and when you'll have the most leverage. Homes that are listed for longer are often seen as stale, and most buyers won't even bother to schedule a showing because they'll assume something is wrong with it. Once a house is stale, not even a dramatic price decrease can give it the appeal it would have had if it were listed at the right price from the start.
- Your high price could make buyers more likely to purchase from your neighbors. If a buyer sees your high-priced home, they'll think they're getting a much better deal by purchasing your neighbors more reasonably priced house. In an apples to apples comparison, they might like your home better, but everyone likes to think they're getting a deal.
- Your appraisal won't match your high list price. This is a big problem for buyers who are working with a lender (and most of them are). If the appraisal price comes in lower than the price you and your buyer have agreed on, they won't get the mortgage, and unless they can pull together enough cash to cover the difference, you'll have to put your house back on the market at a lower price point.
If you're looking to sell your home you've likely been keeping an eye on what other sellers in your neighborhood have been asking for their homes, but the best way to pinpoint the perfect asking price is to talk with a knowledgeable agent who has experience selling in your area. For more information about quickly selling your home, or to learn more about the agents that specialize in your neighborhood, feel free to reach out at 617-236-0353 or through our website.