A well-priced home is based on a lot more than comparable home prices in your area or even your neighborhood. Listing at the right price holds a lot of psychology.
There is an equation of showings and foot traffic you need to create bidding wars and get the right price for your home. If you price your home too high to begin with, you’re going to miss out on a huge margin of potential buyers.
Here are 5 reason why you don’t want to over price your home:
- Longer time on the market: Overpriced homes tend to stay on the market longer than those priced competitively.
- Limited buyer interest: Potential buyers may be turned off by a high asking price and will look for other options.
- Appraisal issues: If the home is overpriced, it may not appraise for the asking price, which can cause issues with financing.
- Missed opportunities: Overpricing can cause the home to miss out on potential offers or bidding wars.
- Price reductions: If the home does not sell, the seller may have to lower the price, which can lead to a lower final sale price than if it had been priced correctly from the beginning.
It may be tempting to just try a price to see if you’ll get it. But if you price it in the ‘sweet spot’, where you are attracting many qualified buyers to the home, you will end up with a bidding war that will give you even more than you hoped for.
