Overpricing your home can be dangerous.
Are you thinking of selling your home, or is it already on the market and languishing for lack of potential buyers?
Condition, location, and marketing all play a role in the successful selling of a home, but nothing is as critical as price. Overpricing a home is the most harmful thing a seller can do, because the longer a home stays on the market, the more potential buyers will begin to suspect that there is something wrong with the house.
One of the things potential sellers say to me is, “Couldn’t we just try it for a couple of weeks?”
A good agent will discourage this. As a Realtor, I subscribe to a code of ethics that obliges me to protect and promote the best interests of my clients, and overpricing a home during the most favorable marketing period is clearly not in the best interest of my seller.
Since the majority of showings will occur during the early period of marketing, and then diminish after existing buyers have seen it, it’s really important to get your home priced right at the onset. But determining price can be tricky. The market is constantly fluctuating, especially here in Macomb County. And it’s important to know that value is not determined by what an owner has invested in a property. Rather, value is determined by what a buyer gets out of the property. For example, a forty-thousand dollar built-in pool does not mean your house is worth forty-thousand dollars more than your neighbors. Likewise, a finished basement can add some value, but not the dollar value you invested. Improvements to the property make your home more attractive to potential buyers, but they will not be buying your home if you exceed market value.
“Overpricing makes other homes more attractive.”
Buyers “bounce-off” overpriced homes, as an overpriced home makes other homes appear more attractive. It happens all the time. I show a nice property to buyers, who express serious interest. Then I run the comps, and we determine the house is overpriced. I end up selling them another house. Weeks later I’ll get a call from the listing agent of the overpriced property, advising me that the price is being lowered. But it’s too late. I’ve sold my qualified buyers another, similar property. One that was priced right.
Beware of real estate agents who tell you what you want to hear. There are plenty of Realtors who don’t do due diligence by presenting sloppy market analysis’s and by failing to explain the importance of market value. There are agents who will list an overpriced home so they can target buyers and then take them elsewhere. But a professional should be honest and up front, and tell you what your home may be worth to a potential buyer.
If you live in Macomb County and are thinking of selling your home, let me help you avoid the dangers of overpricing. Call me for a complimentary market analysis today.
If you live in Macomb County and need to sell your house, call Patty Bellomo, a Realtor at RE/MAX First, at 586-876-1719.