Most homeowners who are thinking of selling have lived in their current home for five years or more. Over that time, they have developed an emotional attachment to their home. And who wouldn`t? A home is a safe haven. It’s an oasis at the end of a crazy workday. It’s a place to raise kids and spend time with loved ones. So naturally, when it comes time to move, sellers view their homes from an emotional standpoint. This can, and often does, affect their perceived value of their home, and often not in a good way - at least, not in the eyes of a potential buyer.
Consider subjective versus objective value. What you subjectively perceive as valuable (the stone fireplace that you spend all of your family Christmases around) might objectively be perceived as `something that needs updating` by the buyer. Consider this: your home is only worth what the current market will bear. This means the buyer will only pay the current fair market value for your home, not what you as a homeowner think your home might be worth because of the special touches you have added to the property.
Overpricing limits the number of potential buyers looking in a certain price range, scares away buyers educated in the current market and market prices, and reduces traffic (fewer people viewing your home) so your home stays on the market longer and runs the risk of becoming `stale.’ When this happens, you are generally forced to reduce your asking price, which often makes buyers wonder if something is wrong with the property. You also run the risk of not selling your home at all, which leaves you feeling disappointed and frustrated and wondering why.
So if you remain objective and look at your home from a buyer’s viewpoint, you probably won`t run the risk of overpricing. Get a proper CMA (comparative market analysis) prepared by a REALTOR® and leave the emotional aspect out of it. By doing this, you will place your home in a position to gain more potential qualified buyers, to sell quicker, and potentially sell for more money (multiple bidders if the current market dictates it).