Sellers Biggest Mistakes is Overpricing a Home
Our market has always been different and you have heard that not every Real Estate Market is the same. They are different. While some area enjoy an increase in prices and double offers, we are still in a declining market, but some home do get more than 1 offer. Those are the homes that are exceptionally well maintained, updated and move in ready!
Some sellers make the mistake and price their home too high from the start and then they wait for showings as well as offers. Buyers and their buyer representatives know the market and frankly some buyers are not in the frame of mind to make a rude offer, too low. There is no starting point in some case so the seller has to wait and the buyer waits in hopes the price will adjust and be reduced.
In the last few weeks I wrote offers on homes for my clients and they all had double + offers. They were very nice homes. If your home needs updating and fresh paint, landscaping and repairs and priced it top dollar you are going to realize you are not getting an offer at your desired price. As a matter of fact you may very well get a much lower price than if you had price it accordingly and fairly. You also need to consider that the house has to APPRAISE and we have appraisal issues with overpriced homes. In the end you have gained nothing.
The biggest mistake a seller can make ids overprice his home. Asking a high price for your home says more about you than it does about your home. It may show you value your home and you may have kept it well but if the price is too high compared to other similar homes, it can make you appear unrealistic to a buyer.
Buyers search the Internet and perhaps MLS or their agent does and they see what is available and has sold. They figure out quickly what the value should be. Buyers also look at homes they can afford and the lender is willing to lend them. When a home is overpriced you could out price yourself from potential buyers. Not all buyers have the state of mind to make a low offer. They are more comfortable to their affordable price than going too high. So you the seller really loses. Buyers will look at all other homes that fits their price range and in the end you help other sellers sell their home and yours remains on the market. Sometimes other homes have more SF, better features, newer features, warranted on almost everything compared to a home that offers none of that.
PRICING IT RIGHT gets you better showings right away. You make a good impression by showing you know the market and price it right to sell. You could be seen as not motivated to sell if it is overpriced. You may also get more than 1 offer if it is pried right. There are nothing but benefits to price it right. Today every buyer is educated about the market they are interested on. Your amenities, what you paid for the house, what you need out of it all does not matter to the buyer.
Very Important: First Impression Count. You should always be ready to show. Preferred would be notice but it does not always work that way,. If you have moved before you know. If the first impression was that your Home is overpriced, they take it off their list perhaps thinking the seller is unrealistic or greedy. They know the market and compare and yours does not compare to similar homes in that price range it makes you look most likely greedy or that you owe too much. When people start thinking that is not a good thing. You may also find a buyer that thinks you are financially in trouble so they do make a low offer or wait for a foreclosures.
In the end it comes down to the simple fact that a buyer pays for a home what he.they are willing to pay, what they think it is worth in today’s market. Your needs and wants out of the sale have nothing to do with what they offer. They compare to similar most recently sold homes and base their offer on that and in the end the appraiser has the final word. If it is overpriced it won’t appraise. Ask yourself, what are you gaining by overpricing a home to sell?
Want to sell and soon? Price it right to give yourself that opportunity or you sit and wait and in the end sell it for less than if you had the right price from the start.
Written by Rosemarie Averhoff, CRS®