In many areas, including yours, the real estate market has become a seller’s market. So does that mean you have carte blanche to price your home where you want to price it?
As always, the answer is no. Overpricing your home from the start is never a good idea and will hurt your chances of selling. Here’s why.
Range of prices
First and foremost, overpricing your home will keep your home from being seen by people who can afford and will want to buy your home.
Most people start their home search online. When they search they set a range of prices that ends with the top of their budget.
If your home is out of that range, they will never see it. So, you think, people who do see it can afford it, right? Wrong. Those who could afford it will be looking for a higher end home than yours. That will make your home look bad in comparison.
Let’s take a peek at Realtor.com where many buyers start their search!
As you can see here, the price breaks suggested by Realtor.com are at $120K, $180K, etc. If you try to “push it” and get $125K for your home, many of the buyers who are looking for affordable housing will not even see your listing.
Another thing to consider is that Realtors tend to search in bands like $250K-$300K. If you “pushed it” and did a listing for $306K you would be seriously shooting yourself in the foot!
So let’s say that someone in that lower range actually stumbles on your listing and falls in love with your home. Great, so you get an offer and jump at it. Problem will be that your home won’t appraise for the amount you asked and they offered. Sale falls through and you’re back to square one.
Days on market
So, you’re thinking, I’ll just lower my price if it doesn’t get any nibbles after a month or two or that sale falls through. Not a good idea either. That means that your home has been on the market for at least 60 days. That tells prospective buyers that because it’s been on the market so long and the price is lowered, there must be something wrong with your home. They see days on the market as an indication of how nice your home is, and you lose in the assumption.
Work with your Realtor to find the best price for your home. Use their expertise and experience to make sure you set the best price.