4 Ways Overpricing Your Home Can Hurt Your Sale
9th May 2017
9th May 2017
The process of selling a house begins with setting the asking price for the property. Although it may seem like a good idea to start by setting a high price, “because all buyers are looking for a deal” it can actually harm your chances of selling the property in a number of ways. Let’s take a look at four ways that overpricing your home can make your home sale more difficult and actually cost you money
1. You’ll Miss Potential Buyers:
If your home is overpriced, you’re going to have a tough time connecting with your target buyer market. Why? Because most buyers put in a max high price into their criteria as they search for properties. While some may include homes a little above their budget to capture overpriced properties, many won’t. If the right buyers don’t see your home they won’t request a viewing.
2. Your Listing Will Stand Out as Overpriced:
Remember that buyers are probably looking at several homes in your area that have very similar criteria. If a home is way overpriced, a well-researched home shopper will be able to spot it from a mile away. While buyers usually do expect to do some negotiating, they don’t want to waste time fighting for a fair price with the property.
3. Buyers my not ever bother trying an offer
If a buyer is interested in your home but realises that they’re going to have to negotiate to get the price into their comfort zone, odds are they’ll end up with another house. Buying a house is stressful enough anyway and it’s difficult to plan a home purchase working with theoretical numbers that may or may come to fruition at the offer table.
4. It will take longer to sell:
This is, perhaps, the most obvious reason it’s damaging to overprice your home. If you really do want to sell your home you’re going to have a much better experience if you price it right the first time. If your home is priced too high and you’re forced to do multiple price drops to generate buyer interest, it’s going to take longer to sell and you’ll probably end up selling for less than you would if it had been priced competitively from the outset.