Posted on: 11 September 2019
It can be tempting. Throwing a crazy high price on your house to see if anyone will bite. The extra money would be great so why not, right? Actually, you may be surprised at what will happen.
Every house a newness window. How long that window is depends on the market, but you want to take advantage of it wherever you live. The problem is that overpriced houses are skipped over. Buyers are savvy. They know what a home is worth after exploring a few open houses and touring what is for sale with their agent. While your price will eventually come down to reality, you will never get that newness back.
Buyer's agents know you are overpriced as soon as they see the listing. They will assume that you fought your agent on the price and are a difficult seller. They might even try to steer their clients away from your home because they are uneasy about dealing with you themselves.
Buyers search in price ranges. In other words, if they are approved to buy a home around 200k, their agent will typically provide a list of homes up to $225,000. If your agent suggested a list price of $215,000 and you insist on $235,000, the buyers shopping in your price range will never even see the listing.
As your home lingers on the market, your DOM, or days on market, will increase. While this will undoubtedly increase your frustration level with the selling process, it will also make potential buyers wonder what is wrong with your home. The longer it sits, the more they will assume that the house itself has issues, which is definitely not a good thing.
Your own agent — no matter how experienced and professional — will lose enthusiasm for selling your home. They want to sell it. Really, they do. It is hard to do the job you were hired to do when the seller ties your hands on the price.
Overpriced homes bring low-ball offers like moths to a flame. The low-ballers do the same thing as overpriced sellers — throw out a crazy price to see if it will stick. To the excited seller, a low-ball offer is like a punch in the stomach.
Licensed real estate agents are trained professionals who sell houses every single day. They know what they are doing. Do not price your home too high. Take their advice instead.
For more information about real estate, contact an agent in your area.Share