Overpricing a home is one of the biggest mistakes you can ever do as a seller. You might think that the high price will help you get a tidy sum in terms of profit, but the truth is that you risk losing much more in terms of other things. Here are a few problems with overpricing your home.
1. Realtors will Avoid You
Genuine realtors will avoid engaging into a listing that is doomed to fail. Instead, you will attract unscrupulous realtors whose sole aim will be to use your home as an advertising vehicle with no purpose of selling at all.
2. You will Scare off Potential Buyers
When a buyer seeks for a property, they do a comparative market analysis (CMA) to know how your property compares to others on the market. Additionally, real estate agents will tell their buyers to steer clear off your property.
3. It will Take Too Much Time to Sell The Property
You will take too long to find a buyer for your property. Your listing might even end up expiring as you wait. As a result, the market will dip and you will end up selling the property at a lower price than you would.
4. Your Property won’t be Found When Searched for
If you set a high price, your property might not turn up in search engine results pages. This is because buyers are searching for a particular price range within that area. For instance, buyers who are looking for a house priced at $500,000 might not get your house that is priced at $600,000.
5. There will Be Problems With Property Appraisal
Lenders use independent appraiser’s to appraise a home that a client wishes to buy. If the appraiser discovers that the home is overpriced, he or she won’t recommend it for a mortgage. You end up missing the deal.
6. You Help the Competition
When you price your house too high, you end up helping other people who are selling at lower prices to be considered. Those offering low prices for similar features will catch the eye of the buyer faster than you.
7. Tougher Negotiations
You might have to face tougher negotiations from your clients since they know that the property has been on the market for a very long time and might not be worthy the amount that you have listed.