If you’re trying to sell your house, you may be looking at this spring season as the sweet spot – and you’re not wrong. We’re still in a seller’s market because there are so few homes for sale right now. And historically, this is the time of year when more buyers move, and competition ticks up. That makes this an exciting time to put up that for sale sign.
But while conditions are great for sellers like you, you’ll still want to be strategic when it comes time to set your asking price. That’s because pricing your house too high may actually cost you in the long run.
The Downside of Overpricing Your House
The asking price for your house sends a message to potential buyers. From the moment they see your listing, the price and the photos are what’s going to make the biggest first impression. And, if it’s priced too high, you may turn people away. As an article from U.S. News Real Estate says:
“Even in a hot market where there are more buyers than houses available for sale, buyers aren't going to pay attention to a home with an inflated asking price.”
That’s because no homebuyer wants to pay more than they have to, especially not today. Many are already feeling the pinch on their budget due to ongoing home price appreciation and today’s mortgage rates. And if they think your house is overpriced, they may write it off without even stepping foot in the front door, or simply won’t make an offer if they think it’s priced too high.
If that happens, it’s going to take longer to sell. And ideally you don’t want to have to think about doing a price drop to try to re-ignite interest in your house. Why? Some buyers will see the price cut as a red flag and wonder why the price was reduced, or they’ll think something is wrong with the house the longer it sits. As an article from Forbes explains:
“It’s not only the price of an overpriced home that turns buyers off. There’s also another negative component that kicks in. . . . if your listing just sits there and accumulates days on the market, it will not be a good look. . . . buyers won’t necessarily ask anyone what’s wrong with the home. They’ll just assume that something is indeed wrong, and will skip over the property and view more recent listings.”
Our Role in Setting the Right Price
In our experience as real estate professionals at Compass, specializing in luxury real estate, setting the right price for your home from the onset is crucial. Unlike the common misconception that pricing your home above market value gives you wiggle room for negotiations, we've found that strategically pricing it at or slightly below the current market value is a more effective approach. But how does one determine the ideal asking price? This is where our expertise shines.
Relying on a professional agent is essential for accurately determining the current market value of your home. We consider various factors, including the condition of your property, any enhancements you've made, and how similar homes in your area are priced. Utilizing this comprehensive data, we pinpoint the target price for your listing. Setting the right price not only attracts more buyers but also increases the likelihood of receiving multiple offers, facilitating a quicker sale at a higher price.
Bottom Line
While it's natural to aim for the highest possible return on your investment, overpricing can deter potential buyers, extending the time your property stays on the market.
We invite you to connect with us at www.shaneandanne.com. Together, we'll determine the most effective price for your home, ensuring you achieve maximum profit while attracting competitive offers from eager buyers.
