Avoid making simple mistakes that will result in your home sitting on the market unsold.
You may be preparing to list your home or already in the process of trying to sell it. Here’s my best advice regarding why you shouldn't overprice your home relative to the current market and how it may lead to an expired listing.
5 Dangers of Overpricing Your Home
Fewer showing
Attract the wrong buyers
Lose in search
Help your competitors
Spend too long on the market
1. Fewer Showings
A well-priced home is based on a lot more than comparable home prices in your area or even your neighborhood. Listing at the right price holds a lot of psychology. There is a certain equation of showings and foot traffic you need to create bidding wars and get the right price for your home. If you price your home too high to begin with, you’re going to miss out on a huge margin of potential buyers.
A HOME WILL PROBABLY GET FEW SHOWINGS IF IT IS MORE THAN 10% ABOVE MARKET VALUE.
Price it right. Additionally, here are some tips that can help your home get more showings:
Get listing feedback: your REALTOR® can get this from other real estate agents and buyers. • Stage your home to sell: take care of curb appeal and cosmetic adjustments to make your home more appealing to buyers.
• Use strategic and creative online marketing.
• Get professional pictures taken and a 360 video tour of your home.
• Appeal to emotion: as more buyers start their journey online, you need a compelling story and reasons they should come out and see the home
2. ATTRACT THE WRONG BUYERS
Price brackets are all-important to home buyers. If bumping up your listing price puts you into another range, you’re going to get the wrong buyers. In this case, the wrong buyers aren’t people who are unqualified. Instead, they’re people who are looking for a certain quality of the home to match their price point.
If your home is overpriced, it won’t have what they’re looking for and you’ll waste a lot of time wooing people who aren’t going to buy your home.
Instead, use these tips to attract the right buyers:
• Update MLS listings with events and ask for an RSVP
• Tap niche or specialty markets
• Get referrals
• Add incentives to the home sale
3. Lose In Search
The price bracket is also relevant for this issue. It’s dangerous to overprice your home because most buyers are finding you through online searches. If you don’t show up for the price bracket your ideal buyer is searching in, you’ll lose out.
This loss of visibility could leave your home sitting on the market and eliminate any activity it could have had.
There are ways to win in search. Of course, the first is pricing your home right. This way, you’ll be within the range of buyers who are looking for a home like yours.
You can also:
• Use quality keywords and buzzwords Add a thorough, colorful description to your post
• Add an array of creative photos and videos
• Talk to your real estate agent about every platform on which your home can be featured, including websites and social media outlets
4. Help Your Competitors
Comparative Market Analysis (CMA) is the process real estate professionals use to analyze recently sold or for sale homes near yours. If that isn’t done, or you ignore it and price too high, you’re actually helping your competitors.
Buyers have certain expectations with a price point for a home. If you’re trying to sell a beer home for a champagne price (and they don’t get champagne), they’re moving onto the next home.
What’s more, buyers in a certain price range will be looking at comparable homes. If your home is priced the same but has inferior features, it will instantly look worse than the homes it’s being shown next to.
In addition to helping your competitors, a home without a completed CMA could have issues during the home appraisal process.
5. Spend Too Long On The Market
Overpriced homes don’t sell fast. The longer a home sits on the market, the less desirable it looks. If you have to start dropping the price, that looks even worse. Pricing your home correctly is the best way to ensure that you get early, quality traffic.
Here are some more tips for selling your home fast
Make it show-worthy
Neutralize your decor
Time your listing
Use professional media
Be accommodating about scheduled showings and open houses
Stand apart with unique events or showcases
Get feedback
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