9 Reasons Why You Should Not Overprice Your Home
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9 REASONS WHY YOU SHOULD NOT OVERPRICE YOUR HOME
If are you thinking of listing your home for a high price with the intention of reducing the price if you don't get any offer, you better think again.
Most homeowners, myself included, always think that their home is worth more than it actually is… and that's because there is a lot of emotion involved. You probably raised your family in that home, and you probably made some expensive upgrades to your personal taste or even maybe you added a swimming pool.
However, buyers will most likely not be interested in those personal upgrades and therefore will attach very little or no extra value to your home compared to similar homes in your area.
That's why it is absolutely important to have an objective market evaluation done by an independent home appraiser or real estate agent.
Now, let me give you 9 reasons why you should not overprice your home. The first one is
#1. LESS DEMAND - Your home will get the most online views and the most showings in the first few days of hitting the market. With the vast amount of market research tools available today, agents and their buyer clients can tell right away when a home is overpriced and they will not want to view it as it will be considered a waste of their time.
#2. FEWER SHOWINGS - If buyers and agents are avoiding viewing your home because they don't want to waste their time, that will inevitably lead to fewer showings.
#3. LONG TIME ON THE MARKET - If your home has fewer showings, then the probability of receiving an offer will be very low, which means that your home will be on the market for a longer time and become a stale listing that most buyers will not be interested in viewing.
#4. COMPETITION WITH HIGHER VALUED HOMES - Let's assume that the actual value of your home is in the $750K to $800K. If you price it in the $800K to $850K range, it will be competing with houses whose actual value are in that price range and buyers will choose those houses over yours because they will clearly see the value difference.
#5. YOUR HOME SELLS YOUR NEIGHBOUR'S HOME - When buyers compare your home with similar homes in your neighbourhood that are priced appropriately, they will see those homes as much better deals than yours and end up buying one of them. So, by overpricing your home, you'll be facilitating the sale of your neighbours' homes.
#6. QUALITY CONCERNS - When your home has been on the market for a long time, buyers will start wondering whether it is not selling because there is a problem with the home, and that doubt can destroy their interest in your home.
#7. PRICE REDUCTIONS - When your home has been on the market for too long, you will have to reduce the price to get some traction and generate interest to get an offer.
#8. LOWBALL OFFERS - Once you start reducing your asking price, you've basically weakened your negotiating position by signalling to buyers that you're desparate to sell and thereby inadvertently attracting lowball offers.
#9. ANXIETY and STRESS - The longer your home sits on the market without any offer, the more desparate you will become especially if you have a deadline to move or you have already bought your next home. This could lead to unnecessary stress and anxiety which is very bad for your health.
Now, if you don't need to move but you just want to test the market, then be my guest... list your home at whatever price you wish and ride the wave. However, if you really need to sell, I'm sure you'll agree with me now that it's not worth it to overprice your home.
I hope you found this information helpful. If you have any questions or you're thinking about selling and you want to get the most money possible in the shortest possible time for your home, call us at 604-800-2044 right now or click here to contact us and we'll be happy to help you.
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