It is no secret that pricing is one of the most important aspects of selling a home. If you price your home too low, you leave money on the proverbial table. While prevailing logic would suggest that you should price your home high to allow room to negotiate, that is also incorrect. In fact, if you price it too high, you could end up sitting on the market for months without so much as a nibble from prospective buyers.
It may be tempting to squeeze every last dollar out of your home sale, but pricing your home too high comes with many inherent risks that you should be aware of before putting your home on the market.
Here are just a few things that can happen when you price your home too high.
Reduced Showings
One of the most immediate dangers of pricing your home too high is that you'll see a significant reduction in the number of showings. Buyers and their agents are savvy and immediately know when a home is overpriced. It is unlikely they will schedule a showing on an overpriced house when there are so many other reasonably priced homes to see.
Newness Window
When you first list your home for sale, it will be considered 'new' on the market. This 'newness window' is where sellers typically see the most activity from buyers. However, if you price your home too high and it does not sell during this crucial period, or you have very few showings, you're in danger of your home becoming 'stale.' Realtor.com reports that a house is considered stale after just "three to five weeks" on the market.
Lowball Offers
Pricing your home too high can also result in lower-than-expected offers from buyers. Prospective buyers will have already done their research and know what similar homes in your area have sold for. They will be less inclined to submit an offer at your full asking price. In fact, they are likely to lowball you and see what happens, which is just a waste of everyone's time and, frankly, a bit insulting.
As you can see, there are a number of dangers associated with pricing your home too high. Work with an experienced real estate agent who will help you make an informed decision about what's best when selling your home. They can find the 'sweet spot' when determining a list price for your home.
Turn to a service such as Earnhardt Real Estate to learn more.
Share28 September 2022
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