Princeton Town Topics – Let’s Talk Real Estate – November 30, 2016
FOUR DANGERS OF OVERPRICING
Your home is a major investment, so it makes sense you want to get all you can when it’s time to sell. But asking a high price simply because you think your home is worth more or you want to “test the market” can wind up backfiring in significant ways.
- First, instead of intriguing buyers and agents, a higher-than-usual price can drive plenty of potential buyers away – and most of these buyers will find another home long before you decide it’s time to lower your price.
- Second, even if you receive your higher price, the home may not appraise at that cost, which means the buyers will not be able to secure financing and your home will not close.
- Third, by pricing your home beyond its market value, you inadvertently make other homes look better by comparison.
- Fourth, you miss out on the initial interest that normally follows a new listing, and you project an image of someone who’s not really serious about closing.
Pricing a home appropriately for the current market is a skill that’s best left to a qualified agent. An agent knows the market inside and out, and they’ll help ensure your home sells for the best price possible.
