If you’re looking to sell your home, you’re probably thinking spring is the best time to do so. But you are wrong. We are still in a seller’s market as there are currently very few homes for sale. Historically, this is a time when buyers are becoming more mobile and competition is becoming more intense. This makes it an exciting time to put up for sale signs.
However, while the conditions are right for sellers like you, you need to be strategic when setting your asking price. Ultimately, pricing your home too high can cost you in the long run.
The downside of paying too much for your home
Your home’s asking price sends a signal to potential buyers. From the moment I see the ad, the prices and photos make the biggest impression. And if the price is too high, people may be turned away. As stated in the U.S. article News Real Estate:
“Even in a hot market where there are more buyers than houses available for sale, buyers aren’t going to pay attention to a home with an inflated asking price.”
That’s because no home buyer wants to pay more than necessary. This is especially true today. With home prices continuing to rise and current mortgage interest rates, many people are facing budget pressures. If they believe that your house is too expensive, they cannot be used on the door or if they think they are too big.
If this happens, the sale takes a long time. Best of all, you don’t have to think about dropping the price to rekindle interest in your home. Why? Some buyers see the price drop as a red flag and wonder why the price has dropped or think there is something wrong with the home because it has been around for so long. A Forbes article explains:
“It’s not only the price of an overpriced home that turns buyers off. There’s also another negative component that kicks in. . . . if your listing just sits there and accumulates days on the market, it will not be a good look. . . . buyers won’t necessarily ask anyone what’s wrong with the home. They’ll just assume that something is indeed wrong, and will skip over the property and view more recent listings.”
The agent’s role in setting the right price
Instead, a much better strategy from the start would be to leave it below its current market value. So how do you find the perfect asking price? You rely on experts. Only a real estate agent has the expertise to research and determine the current market value of your home.
They take into account the condition of your home, any upgrades you’ve made, and what other homes like yours are selling for in your area. They use all the information to find that target number. The right price will attract more buyers and increase the likelihood of seeing more offers. Plus, if your home is priced right, it sells quickly.
