Are you selling your home? Then you need to understand that pricing your home correctly from the beginning is absolutely critical. The most common reason a home doesn’t sell is because it is overpriced.
If you price your home too high in the beginning, you run the risk of ending up with less money in your pocket, which is obviously not the goal when selling a home.
If you have made the mistake of overpricing your home, it’s important that you identify this mistake immediately and make changes as soon as possible.
How do you know if your listed home is overpriced? The tell tale signs to know if what you are asking does not meet market expectations.
- Your Home Is Priced Much Higher Than Your Neighbors
One tell tale sign to know that your home is overpriced is if your home is listed $100,000 higher than other homes for sale in your neighborhood.
- You’ve Had Very Few Or No Showings
Sellers are happy their home is being advertised all over the internet. Weeks pass by and there have been a couple or even worse, zero showings. If your home has been listed for sale for a few weeks and you’ve had only a couple showings, you need adjust the price to generate some activity and showings before excitement turns into frustration
- You Haven’t Received An Offer
If a home is priced correctly, you should receive at least one offer within the first two to three weeks. If you haven’t received an offer after a couple of months, this is a great way to know your home is most likely overpriced (unless you are selling a luxury home or waterfront property).
- You Hired The Agent Who Recommended A Much Higher Price
When you are interviewing prospective Realtors to sell your home, it’s important that you understand how the prospective real estate agent came up with the listing price of your home. There are many real estate agents who will “buy a listing” by suggesting a list price much higher than the market value. If you made the mistake and hired the real estate agent who suggested a much higher listing price, it’s very likely your home is priced higher than it should be.
- Neighbors Homes Are Selling & Yours Is Not
If you’re selling your home and this is happening, this is a sign that your home is priced too high. Make sure you are comparing apples to apples; is your neighbours home the same size or the same style? Were there any upgrades or new appliances (furnace, A/C, roofing, windows) to your neighbours home that you do not have?
Bottom line, if your neighbours homes are selling in your neighborhood and yours is not, it’s probably overpriced.
- Open Houses Are DUDS
Statistically speaking, less than 2% of homes actually sell as a direct result from an open house but if you believe that open houses are necessary to sell your home, what happens when the open houses are DUDS? If your real estate agent markets the open house and not one person walks through the door during the 2 hour open house, then your price could be an issue.
- Internet Traffic Is Very Low
Nowadays, most home buyers are beginning their home search online. When a buyer is interested in a home they see online, your agent will be contacted by either the buyer or their buyer’s agent. If your home is overpriced then there will be little or no internet traffic.
- Showing Feedback Indicates Your Home Is Overpriced
Feedback from other real estate agents as well as buyers who are viewing a property is a huge help. If the feedback from showings is that a home is overpriced, this gives a seller the opportunity to make an adjustment in the price.
- You’ve Received Low Ball Offers
Most overpriced homes will not receive any offers, however if you’re selling your home and have received several offers that you would consider “low ball” offers, you may need to reconsider whether your price is appropriate.
- Your Home Didn’t Sell & Expired
If a home doesn’t sell and becomes an expired listing after 6 months, instead of blaming it on the lack of buyers or the local real estate market, it’s important to look at the price and question if their home was overpriced. Every home has a price that is acceptable to a buyer. If a home’s listing price is relatively close to the number a buyer considers fair, it will sell and not expire, period.
The number one reason a home sells is because the price was right!
If you put the correct price on a home, it will sell in a relatively quick time frame.