Sellers overprice their houses all of the time. There are a lot of excuses for doing so: Let's give that price a try; All we need is one potential; Somebody will love it as much as I do; on. Let me give some reasons not to do that.
Some houses are hard to price; I'm not disputing that. As a Houston Heights Realtor, I sell century old homes that have been renovated to varying degrees. They're in neighborhoods that range all the way from exceptional to rough around the edges. These are frequently tricky to price. Here I am talking about a home that is obviously priced over its market valuation.
This is not a discourse of pricing technique, simply a discussion of the new realities involved in an overpriced home.
- You've wasted your greatest opportunity. A new property on the market gets plenty of attention. You'll get more potential buyers the first two weeks than you will the next 6 weeks. Potential buyers have auto-searches for "New on the Market". If not priced properly, you'll be passed over by this big group of potential buyers.
- It's just going to sit there; itss not going to be shown. You are presuming that potential buyers and their Realtors are dumb and do not know it's priced too high. Well, they do know and they don't want to waste their time.
- You are wasting valuable time. Time passes. Potential buyers make offers on homes, but not yours. The ideal potential buyer may be making his choice now, and you are not even on his radar screen.
- You are making other Sellers happy. Your overpriced home makes theirs more attractive. You aid in selling your neighbor's property rather than your own.
- Your property develops a stigma. Buyers look for what's new on the market, not for what's old and stale
- Thinking that "Let them make an offer and I"ll come down quite a bit". The truth of the matter is they won't make an offer...they just won't!. In reality they will not even visit the property.
- Appraisal: Let's say a potential buyer comes out of the hills, sees your property and is willing to pay your inflated selling price. Will it appraise? No...the appraiser isn't coming out of the hills. He knows an over-priced home when he sees it, and his job is to protect the lender from loaning too much.
Those are the problems, the new realities of overpricing your home. It's your house, you can do what you want, but get sound advice first.
If you want to attempt the higher selling price; re-adjust right away if you are not getting visitors.
Some houses are hard to price; I'm not disputing that. As a Houston Heights Realtor, I sell century old homes that have been renovated to varying degrees. They're in neighborhoods that range all the way from exceptional to rough around the edges. These are frequently tricky to price. Here I am talking about a home that is obviously priced over its market valuation.
This is not a discourse of pricing technique, simply a discussion of the new realities involved in an overpriced home.
- You've wasted your greatest opportunity. A new property on the market gets plenty of attention. You'll get more potential buyers the first two weeks than you will the next 6 weeks. Potential buyers have auto-searches for "New on the Market". If not priced properly, you'll be passed over by this big group of potential buyers.
- It's just going to sit there; itss not going to be shown. You are presuming that potential buyers and their Realtors are dumb and do not know it's priced too high. Well, they do know and they don't want to waste their time.
- You are wasting valuable time. Time passes. Potential buyers make offers on homes, but not yours. The ideal potential buyer may be making his choice now, and you are not even on his radar screen.
- You are making other Sellers happy. Your overpriced home makes theirs more attractive. You aid in selling your neighbor's property rather than your own.
- Your property develops a stigma. Buyers look for what's new on the market, not for what's old and stale
- Thinking that "Let them make an offer and I"ll come down quite a bit". The truth of the matter is they won't make an offer...they just won't!. In reality they will not even visit the property.
- Appraisal: Let's say a potential buyer comes out of the hills, sees your property and is willing to pay your inflated selling price. Will it appraise? No...the appraiser isn't coming out of the hills. He knows an over-priced home when he sees it, and his job is to protect the lender from loaning too much.
Those are the problems, the new realities of overpricing your home. It's your house, you can do what you want, but get sound advice first.
If you want to attempt the higher selling price; re-adjust right away if you are not getting visitors.
About the Author:
Rich Martin is a Broker Associate with Better Homes and Garden Properties in Houston, TX. He specializes in selling older homes, like Houston Heights homes. He also sells new construction homes in inner loop infill areas such as Shady Acres homes.
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