You’re Not Fooling Anyone: the dangers of overpricing your home
What do you think is the #1 thing that is prohibiting your home from selling? The answer may or may not surprise you….more than likely, it is the price of your home. There is no marketing budget on earth that can effectively market an overpriced home. Could it sell at an over market price? Yes, it *could* happen (sure, stranger things have definitely happened…). Is it likely? NO.
It is very rare, and even becoming more rare that a home sells substantially over market price in today’s real estate world. Why? Buyers are more informed than ever before, with access to listing databases and property histories readily available on the internet. Buyers are not going to overpay. They are smart, they know what market prices are, and so do their agents….and if you are overpriced, all you are doing is selling your neighbor’s properly priced home.
Your real estate agent will give you price guidance, but it is ultimately up to you as the seller to determine the asking price of your home. Nobody can MAKE you sell at any price–but if you truly want to sell your home, don’t just hire the listing agent who recommends the highest price!! That is a sure fire way to continue paying your own mortgage payments….A good agent will make an EDUCATED suggestion (based on CMAs and experience) and you should take the suggestion into extreme consideration. I’m sure this topic has been bludgeoned to death in the real estate blogoshphere, but it is worth a quick note, just to reiterate how critical to selling your home pricing is.
“…but we want to leave room for negotiation!” –Famous last words. There is nothing to negotiate if there are no offers coming on your home. Let’s get an example going…..Let’s say you want to sell your beautiful and upgraded 3 bedroom 2 bath home that your agent tells you will sell for $125k-129k. You decide you want to “leave room for negotiation,” so you list your home for $139k (with the thinking that you will sell at market price of $125-129k)…*Heavy Sigh*….So……..you are missing your market entirely. Here’s why: The $125k group of Buyers (who are your real target market!) will simply skip your home and go on to the homes within their budgets..because you’re priced out of their budget. The buyers in the next higher price bracket (which you’re currently priced into) are expecting more amenities and the other homes (or your home’s competition) in your current pricing bracket are much nicer/remodeled/better location than yours and are therefore not even comparable. Price it right, sell it fast!
Long story short: YOU’RE NOT FOOLING ANYBODY. YOU’RE OVERPRICED.
I understand the rationale behind many seller’s thinking that they will leave room for negotiation…and everything is always negotiable….to a certain extent. Maybe you’re only negotiable by $50! AND THAT’S OK, because if you’re priced right, IT WILL SELL at market price.
Want help selling your home? I’d love to give you a free market valuation to help determine your property’s proper price point! Call/ Text or Email Me!
Lisa E. Priest is a Texas REALTOR® / Real Estate Agent with Picket Fence Realty, Inc. in Palestine, Texas. You can reach her via voice / text: 903-948-3343 or email: firstname.lastname@example.org