6 Reasons Not to Overprice Your Home

One of the most important parts of selling your home is getting the price right. Underpricing your home cuts into your equity and could potentially leave thousands of dollars on the table. On the other hand, overpricing your home comes with its own pitfalls. It’s best to get a certified market valuation. Below are 6 reasons not to overprice your home.

1. Overpriced Homes Lose Potential Buyers

Your overpriced home will cause you to miss out on potential homebuyers because they will not even get a chance to see your home. Since homebuyers typically tailor their home searches to fit specific criteria including location and price. Your home will not show up in their search results even if it’s in the area they’re shopping because it will be outside of their price range. This will have the most devastating effect on the sale of your home, especially the first few days after listing it.

2. Overpriced Homes Have Little to No Showings

If your home has been on the market for several weeks and zero buyers have shown interest in scheduling a showing, that is a tell-tale sign that your home may be overpriced. As a matter of fact, this is the first and most obvious sign that your home is overpriced because most buyers prefer to tour a house as soon as it hits the market so they can submit their offers ahead of their competition.

3. Overpriced Homes May Not Receive Offers

This seems a natural consequence of not having much action on your home. If the buyers who are shopping in your area are not seeing your home show up in their home search results, then of course you will not be receiving showing requests or offers. Even if your home does show up, they will be less inclined to make an offer because they will have realized that your home is priced higher than similar homes in the area.

4. Overpriced Homes May Receive Lowball Offers

Overpriced homes tend to receive “lowball” offers. However, oftentimes the offer that is being presented is the fair market price of the home but is perceived as “lowball” by the seller. The other scenario in which your home will receive low offers is if sits on the market too long and buyers believe that the seller has become desperate and willing to accept a lower offer. These buyers are bargain hunters and will usually offer below market value for your home.

5. Overpriced Homes Take Longer to Sell

The first reason your overpriced home will take longer to sell is because of low visibility, since the home isn’t showing up in the potential buyers’ home search results. The second reason your overpriced home will take longer to sell is because your asking price is pushing buyers away from your home and towards the competition. In essence, you’re helping to sell your neighbor’s house.

6. Overpriced Homes Will Not Appraise at Listing Price

An important hurdle that the seller doesn’t take into consideration when pricing their home is the appraised value. Ultimately, the appraised value of the home is what mortgage companies will use to determine the true market value of the home and they will not approve a mortgage loan for higher than the market value. This means that unless your buyer has the extra cash to “bridge the gap,” they will have to walk away, forcing you to put your house back on the market.

It’s best to hire an experienced Realtor who understands your area and how to accurately price your home. Let us help you avoid these pitfalls of overpricing your home. We are your local Deltona Realtors. We live and work in Deltona plus we understand the market.

6 Reasons Not to Overprice Your Home