Overpricing Kills Home Sales
When you’re selling your home, it’s only natural to want to achieve the highest possible price. But what happens if your home has been sitting on the market for months, or sometimes even longer?
You might start to question if there’s something wrong with the property, and if there’s a reason for the lack of interest. It could all come down to one factor: price.
Pricing your home correctly is absolutely essential, and is one of the most common reasons why properties do not sell. It might be tempting to leave the price high in order to make room for negotiation. However, this can be very off-putting for buyers and many won’t bother looking in the first place.
So how can you tell if it’s overpriced or not? When should you reduce your house price? Here are 8 signs that your home’s price could be unreasonable below.
Take a look and see if steps are in order to get your house price reduced to the appropriate amount.
1. Your Property is Priced Much Higher Than Neighboring Properties
The first sign that your home might be overpriced is that your asking price is much higher than other properties listed in the neighborhood. Even if you think that your home is worth the price you’re asking for, some potential buyers could be put off before they’ve even viewed it.
They might think that the price is too unreasonable, and they might not even click on the listing. Or, they might think that you’re just “testing the market” or that you might be difficult to work with.
Even if the price you’ve set has been recommended to you by an agent, it’s best to carry out your own research as well. Check how much similar properties are selling for in the surrounding area. If it’s significantly less than yours, you might need to re-think your asking price.
Looking for a sucker is never a good way to go about selling a house and it’s likely not to appraise. Overpricing of a home occurs quite often because of the wrong valuation methods. Don’t be one of those home sellers!
2. Other Properties in Your Neighborhood Are Selling
It can be easy to blame the market itself for a lack of interest in the property you’re selling. But, if you’re seeing lots of “sold” or “under offer” signs scattered around your neighborhood, only to see your own home sat on the market for months, it could be that your pricing is wrong.
Although there could be other factors, like location, size and decoration..
3. You’re Using the Agent That Gave You the Highest Valuation
It’s only natural to want as much money as possible for your home, and Realtors know this. However, an experienced Realtor will also know that an overpriced home will be unlikely to sell. This means that when choosing the right agent to deal with your sale, you need to find someone with proven experience in selling properties, like those at Maximum Real Estate Exposure.
If you choose an agent simply because they’re promising a higher price than everyone else, it’s likely that they’ve got it wrong. When you’re choosing a real estate agent, make sure that you interview several before choosing one. This could take some time, but it’s better than letting your home sit on the market because it has been overvalued.
Pricing a home properly is one of the key expectations of a real estate agent.
4. The Online Listing Has Had Low Web Traffic
When potential buyers are searching for a property, the internet is most likely going to be the first place they check. Before going to view a property in person, they will check online listings and photographs in the hope that one will catch their interest. But what if no one is clicking on your listing?
This could be a major sign that your price is too high and buyers are being discouraged early on. Buyers might even place a price range within their search results, so if your home should fit within their range, but is overpriced, they will not see your listing. If this is the case, you need to consider adjusting the price.
5. You Haven’t Had Much Interest or Many Viewings
If your home is marketed properly and in a professional way, then you should have had some viewings or interest within the first few weeks of the property being on the market. But, if you’ve had nothing: no phone calls, showings, or held an open house that was unsuccessful, it could be that the price is driving buyers away.
If your home is overpriced, a lot of potential buyers will automatically be turned away, which could result in a lack of interest.
6. You Haven’t Received Any Offers to Buy Your Home
Another sign that your price is unreasonable is that you haven’t had any offers, even if there has been some interest. If you’ve had numerous viewings, but no one is showing signs that they would actually buy the property, then it could be because you’ve set your price too high.
A lot of buyers would be reluctant to put in an offer that’s much lower than the asking price. Although real estate market speeds vary between areas, if you have gone months without a single offer, you should consider lowering the price.
7. You’ve Only Had “Low Ball” Offers
It could be that you have had offers on your home, but that they are “low ball” offers. If your home is much higher in price than similar homes in your neighborhood, then buyers might start making offers that reflect the prices of the other houses.
While it’s easy to be offended by a very low offer, it’s important to be objective and remember that selling a property is a business transaction. Respond to the offer. Even if you don’t want to accept it, treat it as an opportunity to engage with the buyer.
8. Your Property Has Been on The Market For a Long Time
When you are trying to sell your home, another question you need to ask yourself is “how long has it been on the market?”. When potential buyers are looking at your listing, they will see how long it has been on the market for. This will lead them to question the property itself. They might think there’s something wrong with it, or with the neighborhood, and they could see it as a cause for concern.
This is particularly true if your home wasn’t sold within the listing agreement period and the listing expired. This is a red flag for a lot of buyers. From time to time, it could be a problem with the agent. However, if you’re using an agent that’s professional, it’s unlikely that buyers would have missed the listing and it’s likely that the property is overpriced.
Other Helpful Home Selling and Real Estate Resources
- Real Estate myths that won’t go away via Frederick Real Estate Online.
- Make sure your contractor is licensed and insured via Conor MacEvilly.
- Why fall may be a good time to sell a house via Petra Norris.
Use these additional resources to make the best decisions when selling your house.
About the author: Corey Tyner is the founder of Tyner Home Buyers and We Buy Houses. He aims to provide sellers with a quick and easy option to sell their home fast.