A home is always worth exactly what the buyer is willing to pay at that particular time. But, with the economy and the real estate market dictating the market, you have no guarantees that your home will be worth all that money next week or next month. As an accident injury lawyers planning to sell their home, valuation of the property is a common thing.
If your home has been on the market for way too long, your gut feeling is right. There is something wrong, with the price. While no home seller leaves money on the table, no money will be on the table when the price is higher than the prevailing market price. You might think that you sold off your other home too fast but, if you price your home at the market value, you’ll receive offers fast, and your property will fly off the market.
Before we take a look at the signs of overprices homes, here are the reasons for high pricing.
- High pricing to allow for negotiation
After considering the prevailing market price and the prices of other properties in the neighborhood, you may list the house at a higher price just to leave room for negotiation. Every seller has this mindset initially. However, it is a big mistake to price a house above the market value. Since buyers research widely before buying, they will leave out any pricey property, even though you intended to lower the price of the house.
- Pricing a home higher than the comparable homes in the neighborhood.
Doing this makes you appear unreasonable.
Whether you are leaving room to negotiate or if you just think that your home is worth more than the market value, you will not sell the house quickly.
Signs of an overpriced home
- There are few or no scheduled showings
Once a listing is out in the market, you expect a buzz and excitement. You should get many interested parties, as well as requests for showings. However, if your expectations aren’t met, then your home could be overpriced.
- The house has been on the market longer than expected
If your home has been on the market for too long, or if you are a buyer and you come across a house that has been on the market for too many days, your instincts should you of a looming issue. The overpriced houses accumulate too many days on the market.
Also, it the listing expires, then you know that the house is overpriced.
- You aren’t getting many offers
Your home is likely overpriced if you don’t receive any offers. Even though your home is among the most beautiful structures in the neighborhood, the absence of offers points to a huge pricing discrepancy. It is worse if buyers are showering your home with negative feedback.
- Feedback says that the price is too high
There are many real estate agents and brokers in your neighborhood. In one of the meetings, say the broker opens, you could ask for feedback from the agents. If they say that the house is overpriced, it is. The agents will also give information about the features of the house, the ones they liked and the ones they didn’t like, as well as the general condition of the house.
- Using Zestimates
If you priced the house using internet estimates which don’t take upgrades and general conditions into consideration, you would receive incorrect figures.
No buyers are willing to pay an inflated price that is over the market value. They can get better deals elsewhere. Therefore, make use of the one pricing chance you have and price the house correctly. You should price the house at the market value when the house was first listed. To re-list, cut the price down enough.