Everyone wants to get the most money out of selling their house. No one ever said, “hey, I don’t mind losing a few thousand on my house sale”. But, did you know that pricing your home too high can actually hinder your home sale and make you lose money? Pricing your home for more than it is worth is probably the biggest mistake a home seller can make and it will definitely cost you.
Some sellers mistakenly believe that they can follow the rules of bargaining and price their home higher than they are willing to take for it. They feel that a buyer will come in with a lower offer anyway and they’ll just accept it, but that is definitely not the case. By pricing your home too high you are:
- · Stopping people from seeing your home, thinking it is out of their price range
- · Making buyers assume that you aren’t willing to negotiate
- · Stopping the well-informed buyers from bidding, knowing it isn’t worth the selling price
- · Inviting buyers to make low-ball offers knowing that you’ve priced too high
- · How can you tell if your home is priced too high?
If you are working with a real estate professional, you should have worked together at one of your initial meetings to determine fair value for your home, based on what your neighboring homes are selling for. If you priced it higher than their suggested amount, you already know that it is priced higher than what it should be. As well, another way to get a clue that your home is priced too high is if you aren’t getting showings or offers. As time goes on, the longer your home sits at the price it is at, the less chance you have for selling it, because buyers will clue into the fact that there is something not right about your home and not bother to see it.
A Better Idea
While pricing your home at what it’s worth and trying to sell it at the selling price is always the best option, there is another interesting option for home sellers. If you price your home lower than what other homes in your area are selling for, this could generate interest. Buyers who weren’t looking in the range of what your home is worth will be able to include it on their showing list and you may end up with multiple offers. That is never a bad thing for a seller.
If you need help determining the price for your home, feel free to contact me!