1. Appraisal Problems
Even if you do find a buyer willing to pay an inflated price, the fact is that over 90% of buyers use some kind of financing to pay for their home purchase. If your home won’t appraise for the purchase price, the sale will likely fail.
2. No Showings
Today’s sophisticated home buyers are well educated about the real estate market. If your home is overpriced they won’t bother looking at it, let alone make you an offer.
3. Branding Problems
When a new listing hits the market, every agent quickly checks the property out to see if it’s a good fit for their clients. If your home is branded as “overpriced,” reigniting interest may be an uphill battle.
4. Selling the Competition
Overpricing helps your competition. How? Their lower prices seem like bargains! Nothing is worse than watching your neighbors put up a sold sign.
The longer your home sits on the market, the more likely it is to become a stale listing. Have you ever seen a property that seems to be perpetually for sale? Do you ever wonder – what’s wrong with that house? Buyers will think the same thing about your property, too…and stay far away from it.
6. Tougher Negotiations
Buyers who do view your home may negotiate harder because the home has been on the market for a longer period of time and because it is overpriced compared to the competition.
7. Lost Opportunities
You will lose a percentage of buyers who are outside of your price point. These are buyers who are looking in the price range that the home will eventually sell for, but don’t see the home because the price is above their pre-set budget.
Buyers and Sellers look at 10-15 homes before making a buying decision. Because of this, setting a competitive price relative to the competition is an essential component to a successful marketing strategy. Some real estate agents will mislead their customers by listing way above market value to secure business, resulting in a dead listing with no offers.
At Showcase Properties, we value and respect our customers. We will always offer the best strategy for listing your property. Don’t just list your property, Showcase It. Click here for our FREE Seller’s guide. To learn more about how an agent helps a seller set a price, check out our blog post “The Art of the Asking Price”.
If you have questions or are ready to list your home, contact our team of Alachua and Marion County realtors today.