Buyers seldom look at only one house, and often spend weeks and months comparison shopping multiple homes. If your property is priced higher than your competition, the following consequences may occur:
1. Lost Momentum
Overpriced properties go stale in the first weeks on the market. Even if you later readjust with a more competitive price, it can be difficult to rekindle interest in a home that has already been on the market. In order to gain traction, its important to hit market at a competitive price.
2. Fewer Showings
Overpriced properties will get fewer showings because they will not be shown to prospective buyers who would have been interested if the property was competitively priced. Additionally, by pricing your home too high you may be losing buyers by placing yourself outside of their price range.
3. More Time and Less Money
If your property is overpriced it will take much longer to sell. Homes on the market for an extended period of time typically sell for significantly less than those that close quickly.
4. You Help Sell Your Neighbors' Home
Overpricing your home will benefit competitively priced homes in your area far more than it benefits you. By overpricing your home you make their homes look like a better deal and drive buyers to their homes instead of your own.
5. Appraisal Issues
Even if you do manage to get a high priced offer to match your high priced home, appraisers may have difficulty justifying the price. If your buyer can't obtain a loan for your high priced home they won't be able to buy it.
It's important to price your home right. While it is understandable that sellers want to get the most for their home, hitting market at too high of a price will actually hurt their earnings in the long term. To make sure you find the perfect price for your home, contact Mary Bowen Homes for a listing consultation today.