When it’s time to sell your home, pricing is one of the most important factors in whether your home sells quickly or stays on the market forever. Overpricing a home creates damaging effects on the time your house will sit on the market. A good real estate agent will tell you many things that help determine the price, including the fair market value of your home and the average number of days most homes are on the market. When a home stays on the market too long, it bloats the days on the market average.
Don’t Set Yourself Up to Fail
If you insist in pricing your home too high, you are not only setting yourself up to fail at selling it, but you are also setting the agent up to fail. Your over-priced property will also bloat the days on the market statistics. More importantly, you’ll muddy the water. If a home is overpriced, word gets out. You’ll notice showing dropping off and you’ll get few, if any, offers.
The Wrong Real Estate Agent
In addition to not being able to sell your property, you’ll attract the wrong type of realtor. Some realtors may not get a listing unless no one else will take it. This type of realtor will tell you what you want to hear, just to get the listing, because that agent can’t compete with other agents for sellers. The other unscrupulous practice is an agent who wants to use your home as a way to find buyers. Seller agents might list your home with a bloated price. Then take anyone who comes in to purchase to other properties that are listed at fair market value.
When a buyer looks for a home, he or she tells the realtor the price range and the features he or she is looking for. Your house may be perfect for this buyer. However, if the buyer knows the fair market value in your area is $350,000 and can’t spend over $370,000, your home, which is listed for $399,999 won’t show up in the realtor’s search. Nor will it show up in any searches the buyer does on his or her own. That is a potential buyer you missed because your home was overpriced.
Days on the Market
The average days on the market is important. Many buyers realize how many days homes in the area stay on the market. If your home is on the market too long because of the price, a buyer’s mind starts to wander. As a buyer, you will wonder what else is wrong with the house. They may suspect that the price is too high, but they will also wonder if the house has other problems. Problems such as; a bad roof, poor drainage, mold issues or other issues. If a buyer thinks that something might be wrong with a house, he or she may not even go see the house. Thus, pricing your home to sell for the fair market value so that it has a much better chance to sell within the average number of days on the market is more beneficial to you.
Additional Damaging Effects
Once buyers realize your home is overpriced, they’ll stop looking. If your home doesn’t have many offers in the first few weeks, your real estate agent may suggest lowering the price. However, the damage is already done. Since buyers and other agents are still able to see how long the home has been on the market. Even if you get an offer, that offer might be lower than what you want. Buyers will assume that if a property has been on the market for too long, that you’re motivated to sell. Typically the house will sell at a lower price. Those may be the only offers you get. Therefore, you may end up selling much lower than you would if you had listed the property at fair market value when the listing was new.
Visit On Point Carolinas Realty
If you are ready to sell your home, visit On Point Carolinas Realty to discuss the sale of your home. Our agents will research the fair market value for the area your home is located in and advise you of the best price to list your home.