A list price can make or break your home sale. Regardless of whether or not it’s a buyer’s or seller’s market, it’s crucial to price right from the get-go. Keep reading to discover the drawbacks of overpricing your home.
New listings have about a 14-day window of opportunity where they have the most interest and highest number of showings. Buyers who are comparing your home to other listings and see the price exceeding that of similar offers will quickly rule it out as an option and not even consider seeing it in person.
When it comes to selling your home, time is of the utmost importance. Overpricing your home will inevitably lengthen the amount of time it stays on market, and a side-effect is potential buyers deducing that there is a deal-breaking issue with the home.
As a rule of thumb, most competitive offers are made within the first few weeks of your home being on the market. It’s not uncommon for buyers to propose lowball offers if they see that your home has been sitting on the market for an extended period.
Even in the best-case scenario of finding a buyer willing to pay more than market value for your home, most buyers will demand an appraisal.
The buyer’s lender will require that the appraisal coincides with the sales price as it’s a standard contingency of the contract. Since appraisers look at a variety of factors and compare your home to other active listings, pending sales, and recently closed sales, there will inevitably be a discrepancy between the appraised value and the selling price, which can create problems between the buyer and the buyer’s lender.
If you’ve already made an offer on a home and it’s been accepted, the deal can be lost if your home takes too long to sell. Not everyone can afford to wait for you to get your asking price.
On top of that, mortgage offers are not typically valid longer than a few months. If you exceed this timeframe, you may have to reapply, costing you more fees and further delays.
Most buyers aren’t going to reconsider a home that they’ve already associated with being out of their price range. Many of the qualified buyers will have already found another house by the time you reduce the price to fair market value.
If a buyer falls in love with your home, they will wait for it to sit on the market long enough for you to accept their lowball offer.
If you’d like to discuss your Bedford real estate goals, feel free to give us a call at (646) 937-1897, or email us at firstname.lastname@example.org.