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If Your House’s Price Is Not Compelling, It’s Not Selling!
Overpricing Your Home Can Have Severe Consequences! Yet, so many sellers make this mistake.
There’s one big mistake you need to avoid when you sell your house this year: setting your price too high. It might seem like overpricing gives you room to negotiate or could really boost your profit, but the reality is, it usually backfires.
In fact, Realtor.com says almost 20% of sellers — that’s one in five — have to reduce their price to get their house sold. And you don’t want to be one of them. Here’s why starting too high can lead to trouble, and how to avoid it.
Overpricing Pushes Buyers AwayWith mortgage rates and home prices where they are right now, buyers are already stretching their budgets to make a move. So, when they see a house that’s priced too high, they’re not thinking, “I can negotiate.” They’re more likely to think, “next” and skip over your house entirely. An article from the National Association of Realtors (NAR) explains:
“Some sellers are pricing their homes higher than ever just because they can, but this may drive away serious buyers . . .”And if they skip over your listing, you’ll miss out on the chance to get them through the door. That’s the last thing you want because fewer showings mean fewer chances to receive an offer.
The Longer Your House Sits, the More Skeptical Buyers Will GetHere’s the other issue. An overpriced house tends to sit on the market longer. And the longer a house lingers, the more buyers start to wonder what’s wrong with it. Is there a problem with the house itself? Are you difficult to work with? Even if the only issue is the price, that extra time creates doubt. As U.S. News says:
“. . . setting an unrealistically high price with the idea that you can come down later doesn’t work in real estate . . . A home that’s overpriced in the beginning tends to stay on the market longer, even after the price is cut, because buyers think there must be something wrong with it.”At that point, you’ll have no choice but to lower your price to drum up interest. But that price reduction comes with its own downside: buyers may see it as another red flag, that there’s an issue with the house.
The Key To Finding the Right Price for Your HouseSo, what’s the secret to avoiding all these headaches? It’s simple. Work with a local real estate agent who knows the market inside and out, and who’s going to be honest with you about how you should price your house.
You don’t want to partner with someone who just agrees to whatever number you throw out there. That’s not an expert who’s going to get you the best results.
You want an agent who recommends a price based on their expertise. The right agent will use real-time data from your local market to help you land on a price that makes sense — one that grabs attention, attracts buyers, and still helps you walk away with a great return. Someone who has been there and done that – and done it well. That’s the agent you want to work with.
Bottom Line:
Remember, if the price isn’t compelling, it’s not selling. Instead of shooting too high and scaring off buyers, work with a local agent who knows how to price it right. Let’s team up and make sure your house hits the market with the right price, gets noticed, and gets sold.
Overpricing Your Home Can Have Severe Consequences! Yet, so many sellers make this mistake.
There’s one big mistake you need to avoid when you sell your house this year: setting your price too high. It might seem like overpricing gives you room to negotiate or could really boost your profit, but the reality is, it usually backfires.
In fact, Realtor.com says almost 20% of sellers — that’s one in five — have to reduce their price to get their house sold. And you don’t want to be one of them. Here’s why starting too high can lead to trouble, and how to avoid it.
Overpricing Pushes Buyers AwayWith mortgage rates and home prices where they are right now, buyers are already stretching their budgets to make a move. So, when they see a house that’s priced too high, they’re not thinking, “I can negotiate.” They’re more likely to think, “next” and skip over your house entirely. An article from the National Association of Realtors (NAR) explains:
“Some sellers are pricing their homes higher than ever just because they can, but this may drive away serious buyers . . .”And if they skip over your listing, you’ll miss out on the chance to get them through the door. That’s the last thing you want because fewer showings mean fewer chances to receive an offer.
The Longer Your House Sits, the More Skeptical Buyers Will GetHere’s the other issue. An overpriced house tends to sit on the market longer. And the longer a house lingers, the more buyers start to wonder what’s wrong with it. Is there a problem with the house itself? Are you difficult to work with? Even if the only issue is the price, that extra time creates doubt. As U.S. News says:
“. . . setting an unrealistically high price with the idea that you can come down later doesn’t work in real estate . . . A home that’s overpriced in the beginning tends to stay on the market longer, even after the price is cut, because buyers think there must be something wrong with it.”At that point, you’ll have no choice but to lower your price to drum up interest. But that price reduction comes with its own downside: buyers may see it as another red flag, that there’s an issue with the house.
The Key To Finding the Right Price for Your HouseSo, what’s the secret to avoiding all these headaches? It’s simple. Work with a local real estate agent who knows the market inside and out, and who’s going to be honest with you about how you should price your house.
You don’t want to partner with someone who just agrees to whatever number you throw out there. That’s not an expert who’s going to get you the best results.
You want an agent who recommends a price based on their expertise. The right agent will use real-time data from your local market to help you land on a price that makes sense — one that grabs attention, attracts buyers, and still helps you walk away with a great return. Someone who has been there and done that – and done it well. That’s the agent you want to work with.
Bottom Line:
Remember, if the price isn’t compelling, it’s not selling. Instead of shooting too high and scaring off buyers, work with a local agent who knows how to price it right. Let’s team up and make sure your house hits the market with the right price, gets noticed, and gets sold.
The Honeymoon Phase!
In real estate, the first three to four weeks of a listing are considered crucial because this is when a property receives the most exposure and interest from potential buyers, meaning the highest chance of generating a quick sale with optimal pricing; if a house doesn't sell within this initial window, it may see significantly less activity as the novelty wears off.
Key reasons why the first three to four weeks are important:
What sellers can do to maximize the first three weeks:
In real estate, the first three to four weeks of a listing are considered crucial because this is when a property receives the most exposure and interest from potential buyers, meaning the highest chance of generating a quick sale with optimal pricing; if a house doesn't sell within this initial window, it may see significantly less activity as the novelty wears off.
Key reasons why the first three to four weeks are important:
- Maximum Visibility:
During this period, the listing is fresh on the market, generating the most views on online platforms, social media promotion, and agent outreach. - Buyer Enthusiasm:
New listings tend to attract more immediate interest from buyers actively searching for homes. - Opportunity for Multiple Offers:
If a property is well-priced and desirable, the initial weeks can lead to multiple offers, potentially driving up the selling price. - First Impression Matters:
High-quality photos, virtual tours, and well-written descriptions are crucial to capture attention early on.
What sellers can do to maximize the first three weeks:
- Price strategically:
Set a competitive listing price based on market analysis to attract buyers quickly. This would typically be slightly below market price. - Professional marketing:
Utilize high-quality photos, virtual tours, and targeted online advertising. - Open houses:
Schedule open houses to allow potential buyers to see the property in person. - Agent communication:
Work closely with your real estate agent to actively promote the listing and follow up with inquiries.
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In real estate, there is a simple guideline that often applies here. Essentially, when there is less than a 6-month supply of inventory available, we are in a seller’s market and we will see greater appreciation. Between a 6 to 7-month supply is a neutral market, where prices will increase at the rate of inflation. More than a 7-month supply means we are in a buyer’s market and can expect depreciation in home values.
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