Tips to Avoid Overpricing Your Home

Selling your home can be difficult, especially on an emotional level. Every day spent within these walls has left a mark on your memory. As family and friends gathered to share life's joys with you, this house has become a part of you. When the time comes to sell, it's not uncommon for sellers to recall these memories and allow their emotions to drive up the price. Unfortunately, overpricing your home is one of the worst mistakes a seller can make.

You believe our home is worth every penny of its listing price, and you're not wrong. It's natural for sellers to think that the time, effort, and home improvement investments they invested should be accounted for in the price. However, perceived value and actual value are seldom ever similar when it comes to selling your home.

Two common mistakes sellers make are pricing the home high in hopes to negotiate and purposely pricing the home higher than the comparative market analysis suggests. How can these decisions negatively impact the success of selling your home?

• Buyers may not feel comfortable offering a lower price. While buyers may offer a price that they believe is reasonable, they also may withhold their offer so that they don't offend the seller.
• The market can change over time. Today's housing market and tomorrow's housing market may be dramatically different. If your overpriced home sits on the market for too long, there's a chance that interest rates, inventory levels, and economic health may change for the worse.
• Price reductions may show desperation. If a buyer is interested enough in your home, chances are that they'll monitor the listing for price reductions. When they see that the price has been reduced after the house has been listed for days without success, they make take advantage of your willingness to sell and place an offer that's lower than asking price.
• Showing quality may suffer. If you're selling your home using tried-and-true tricks like enlisting weekly cleaning services and lawn care maintenance, these costs will quickly add up. Unless you keep investing in your home's presentation, you risk letting the home's visual appeal suffer, which may turn away buyers.
• High priced homes help other sellers. Even if your home is listed for a few thousand more than another comparable property in your area, you're still viewed as the most expensive. Other sellers may be willing to sweeten their listing by opening themselves up to negotiations from buyers or offering them small incentives that make their property more enticing than yours.

How Can You Avoid Overpricing Your Home?

First, your real estate agent should conduct a competitive market analysis. Then, have your home appraised before listing it so you'll know a reasonable price range. Finally, you should try not to let your emotions influence your perception of the home's value.

Ultimately, your agent's goal is to help you successfully sell your home. An experienced agent or broker who is professional and knowledgeable will price your home for an amount that maximizes your financial benefit while staying within a price range that buyers find reasonable and appealing.

Selling your home can be a positive experience, especially when it's priced to sell. Trust in your agent and the hard data to avoid overpricing your property.  

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