You definitely need to understand the dangers of pricing your home too high. Price a home too high and the right buyers will not even give a home a second look. Instead the home will sit on the market without much interest and the longer it sits the more of a negative association will come with that home. Not that there may be anything wrong with the home but the longer it sits on the market then homebuyers automatically assume that something is wrong. As a result it pays to make sure a home is priced right from the start and/or the homeowner is ready to adjust the price if the signs show the price to be too high.Many homeowners are reluctant to drop their listing price. But the reality is, buyers may not seriously consider your property if they think your home is overpriced.
Attitudes have changed since the Federal Reserve started hiking interest rates. Many of today’s homebuyers are no longer willing or able to pay as high a price on a new home as they might have when borrowing costs were lower. If your home’s original asking price was set using sales data from the market’s peak, then you may need to rethink your pricing strategy.
Economic factors aren’t the only reasons, though, why a home’s asking price might not match its market value. Pricing a home can be tricky, regardless of the economic climate, because so many factors can impact how much buyers are willing to pay. For example, unique, highly customized, and luxury properties are particularly difficult to price because there aren’t a lot of comparable homes with which to compare them. Regardless, if your home sat on the market for months without an offer, then chances are good that your asking price needs to be reevaluated.
Now What?
If you aren’t in a rush to sell your home, adjustments to timing or marketing may bring in a new pool of potential buyers. And repairs, upgrades, and staging can increase the perceived value of your home, which may be enough to bring a buyer to the table at your original list price. However the dangers of pricing your home too high.
Understanding the dangers of pricing your home too high is crucial when it comes to selling your home. I am a local market expert and have access to the latest market data and comparable sales in your neighborhood. I can help you determine a realistic asking price for your home given today’s market conditions. Just reach out for a free home value assessment! Follow me on Facebook and Instagram for real estate tips and advice!
