When it comes to pricing your home, it is easy to want what you expect, but it can come with a price tag, large risk and overall a stagnant property that sits. With this is mind, here are 6 risks that my buyers have shared with me when it comes to Seller's over -pricing their home:
You won't attract offers without leaving room for negotiations. If a buyer views your property they might not make an offer if negotiations won't bring them within an acceptable price range. Also, reasonable offers will seem like a "low ball" offer and the buyer might not want to insult you with one.
A long period on the market will leave buyers wary. As the home doesn't sell due to its overpriced stats, buyers will be convinces there are other defects or reasons the home hasn't sold. Statistically, the longer a home is on the market, the greater the likelihood that low ball offers will be received.
You will miss the burst of the initial market activity. When a new home enters the market, a great number of buyers receive an immediate email. Homes priced beyond their range, or the expected range of the neighbourhood, will miss the initial flurry and those potential buyers. Buyer know their prices, they do just as much research daily during their house hunting time and they know when a price is reasonable.
It gives you a bad first impression. Over-pricing to a Buyer can mean you're a tough one, so they may just let you slip through their property alerts. They immediately think you won't even look at their offer if they were to submit one.
Other homes for sale look far more appealing cause a buyer can buy something similar to yours for less.
Your competition, can look really good in a ready and willing buyer's eyes.
It can cause appraisal issues. If a buyer can't approve his financing because the price is too high. Majority of lenders don't want to be investing in a home past its fair market value. So 2 weeks into your subjects, buyers bail, and
you're back to starting the whole marketing process all over again. Therefore, your listing becomes stagnant and untrustworthy to the next buyer.