As the market shifts in some regions to favor homebuyers over home sellers, now more than ever it's important to properly price a home so that it sells in a timely manner. Listed below are some issues that home sellers should consider when pricing their home for sale.
1. An overpriced home is often overlooked by potential homebuyers and sits on the real estate market for a longer period of time.
2. An overpriced home, especially in a declining market, could eventually lead to the home owner having to reduce the price, often to a much lower range.
3. Buyers may avoid making offers on homes that are overpriced because these homes invariably take more time and energy in negotiation.
4. Home buyers may perceive sellers of overpriced homes as unreasonable and steer clear of them.
5. Home buyers may be reluctant to approach sellers of overpriced homes with a low offer. The buyer would rather wait to see if the sellers are going to lower their price to a reasonable range.
6. Buyers may lose their enthusiasm when they see an overpriced home. Even if the home in question appeals to them, they are put off by its above market pricing.
7. Homes priced too high may not receive any offers, may receive fewer showings and therefore take more time to sell.
Homes that are not competitively priced send the wrong signals to prospective homebuyers. In many cases, overpricing a home could lead to an exceedingly long sales cycle or no sale at all.
So before you put up your home for sale, get a good real estate agent to recommend a sales price range. This is vital, especially if your local real estate market has declined since your last home valuation. A good real estate agent should be able to do this and also guide you through the entire selling process.
