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What is one of the worst mistakes you can make as a seller? Overpricing your home. While it might seem like a good strategy to start high and leave room for negotiation, this approach can actually lead to your home sitting on the market for an extended period of time without any offers. When this happens, you may be forced to drop the asking price to reignite interest. Your listing becomes “stale” and buyer’s inclination is to ask “What’s wrong with the house?”.
According to recent data from Realtor.com, an increasing number of homeowners are realizing the consequences of overpricing and are resorting to price reductions. If you’re considering selling your home, it’s essential to avoid this costly pitfall.
The Key to Proper Pricing: Trust an Expert
The best way to ensure your home is priced correctly is to work with a trusted real estate agent. For instance, Karen Daugerdas, a seasoned REALTOR® and accredited Pricing Strategy Advisor, uses multiple sources and her extensive market knowledge to help determine the right price for your home. With her guidance, you can avoid the common mistakes that often lead to unnecessary price cuts.
Understanding the Market
One of the most important factors in setting the right price is understanding the current market conditions. The housing market has changed significantly since the pandemic, with a notable moderation in home prices. Setting your asking price based on outdated market data could result in your home being overpriced, leading to a lack of buyer interest.
Avoiding Common Pricing Mistakes
Another common mistake sellers make is pricing their homes based on the amount they want to make from the sale, rather than the property’s actual market value. You might see homes in your neighborhood selling for top dollar and assume yours will do the same. However, it’s crucial to consider factors such as size, condition, and unique features. For instance, a home with a deck and a large backyard or a finished basement is likely to command a higher price than a similar home without these features.
A qualified agent like Karen Daugerdas will conduct a comprehensive comparative market analysis (CMA) to ensure your home is priced appropriately compared to similar properties. This analysis helps provide an accurate picture of what buyers are willing to pay for homes like yours.
The Dangers of Overpricing
Some sellers believe that setting a higher price gives them more room to negotiate. However, this strategy can backfire. A price that seems too high can deter potential buyers from even considering your home. Instead of creating room for negotiation, you might be driving buyers away. The initial burst of interest when a home is first listed is crucial, and overpricing can cause you to miss this peak period.
The Bottom Line
Overpricing your home can have serious consequences, including longer time on the market and the need for price reductions that can diminish your profit. By trusting an experienced real estate agent, you can gain an objective perspective, benefit from in-depth market knowledge, and employ a strategic approach to pricing your home correctly from the start.
If you have questions or need expert advice on selling your home, don’t hesitate to reach out to Karen Daugerdas, REALTOR®, Pricing Strategy Advisor®, and Accredited Buyer’s Representative® at 847.494.1102. She’s here to help you make the most of your home sale.
