3 Reasons You Should Not Overprice Your House
Tags: knowledge broker, knowledge broker real estate, toronto real estate, newmarket real estate, new homes, new condos, newmarket homes for sale, dream home, dream home inspiration, preparing your home for winter, winter buyers, winter prep
The housing market has been crazy this year, with homes selling at all-time highs and inventory at all-time lows. However, we are seeing some sellers making one critical error, listing their homes too high. When you overprice your house, you are taking the risk of not reaching the right buyers, having your home inspected under a microscope, or worse, having to take it off the market altogether. Here are three reasons why you must price your house right the first time.
#1 High Prices Put Off Buyers
Today buyers are highly aware of market values with the help of their friendly neighbourhood agent or the internet. They are likely aware of how much similar properties have recently sold for in your area. If your home is grossly overpriced, buyers will know.
#2 Your Home May Sit On The Market Longer
It might be hard to believe, but even in this market, your home could stay up on the MLS for more than a day. After you list your home, it will generate a lot of activity. However, your home is at its peak value the day it hits the market, and every day it stays up, it loses its freshness, and buyers will move on if they do not like the design, location and price. Over time, a new batch of buyers will emerge, but they may worry something is wrong with the property and avoid it.
#3 Dropping The Price Hurts
Having to drop the price of your house hurts in a few ways. The first is that buyers who saw your listing at its original price will notice the price reduction and question it. They may contribute it to an inexperienced realtor or a greedy seller. Buyers will not want to work with either.
Buyers are also quick to move on in their home search and might cross yours off the list entirely if it is out of their price range.
Lastly, you might have to settle for an offer that you do not want. Buyers may offer a lower price or be less flexible with their conditions because they know how long the property has been up on the market. If you do not accept that offer, you may have to take your home off the market and wait to try again.
It might seem tempting to ask for a higher price but the cons certainly outweigh the pros. It will send a much better message to prospective buyers that you understand your home's worth and the real estate market. You are also opening up your home to bidding wars, which might produce an out-of-this-world offer.
If you are ready to sell and want help setting your price, please contact me for a fair market evaluation.
At Knowledge Broker, our goal is to create an open-source of information for all our clients. At the end of the day, they get exactly what they want and what they need. If you know someone who could use our help or services, please give them our details using the contact information below.
JOSHUA CAMPBELL (@knowledgebrkr)
Real Estate Broker
Coldwell Banker The Real Estate Centre, Brokerage
249 Avenue Road • Newmarket, ON L3Y 1N8