Pricing your home correctly when you first put it on the market is very important. Starting out with the right price will mean the difference between selling quickly and possibly not selling at all.
So why does overpricing sabotage selling your home?
Let’s start with the fact that the buyers who can buy your home won’t even see it unless the price is right, and those who will see it are looking for something in that actual higher price range. When buyers look for a home they choose a price range from the highest their budget will allow to the lowest price that represents the quality of home they want. No matter if they search the internet first, or just contact a realtor to assist them, if your home is slightly overpriced, it won’t show up in that range.
Perception and market timing
Second, the market for a newly listed home is the most active in the first 30 days. Even if you think that you can drop your price later, you won’t be willing to drop your price for at least 90 days, meaning you miss the hot selling period. It gets even worse. Remember, even if you have the most fantastic house on the block, the longer it sits the more people think something is wrong with it. Perception is everything. If it was so great it would have sold already, right? Maybe not, but that’s what sellers are thinking. Even an inkling that something might be wrong and they look elsewhere and won’t buy your home. There goes your chance to get market value!
Lower offers or market value
Guess what else will happen? That idea that overpricing it will get you at least market value is also wrong. After you drop to a more reasonable price that time on the market will mean that people will offer even lower. You’ll be so tired of trying to sell it that you’ll take less. Price it right the first time and that is much less likely to happen.