People overprice their homes all the time. There are a million excuses for doing so: Let's give that price a try; All we need is one buyer; Someone will adore it as much as I do; on and on. Let me give some reasons not to do that.
Some houses are tricky to price; I'm not disputing that. As a Houston Heights Realtor, I sell century old homes which have been updated to varying degrees. They're in neighborhoods that go from exceptional to rough around the edges. These are sometimes tough to price. Here I am talking about a property that is obviously priced over its market valuation.
This is not a discourse of pricing method, just a discussion of the new realities involved in an overpriced home.
- You have wasted your biggest opportunity. A new house on the market gets a lot of attention. You will get more viewers the 1st 2 weeks than you may the following 6 weeks. Buyers have auto-searches for "New on the Market". If not priced correctly, you will be passed over by this large group of buyers.
- It is just going to sit there; itss not going to be shown. You are assuming that buyers and their Realtors are stupid and don't know it's overpriced. Well, they do know and they do not want to waste time.
- You're wasting valuable time. Time passes. Buyers make offers on houses, but not yours. The perfect buyer might be making his decision now, and you aren't even on his radar screen.
- You are making other Sellers happy. Your expensive home makes theirs more attractive. You help sell your neighbor's house instead of your own.
- Your house develops a stigma. People 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 reality is they will not make an offer...they just won't!. In fact , they won't even visit the house.
- Appraisal: Let's assume a purchaser comes out of the hills, sees your house and is willing to pay your inflated price. Will it appraise? No...the appraiser is not coming out of the hills. He knows an over-priced home when he sees it, and his job is to protect the bank from lending too much.
Those are the difficultiess, the new realities of overpricing your house. It is your property, you can do what you want, but get good advice first.
If you want to attempt the higher selling price; re-adjust right away if you are not getting visitors.
Some houses are tricky to price; I'm not disputing that. As a Houston Heights Realtor, I sell century old homes which have been updated to varying degrees. They're in neighborhoods that go from exceptional to rough around the edges. These are sometimes tough to price. Here I am talking about a property that is obviously priced over its market valuation.
This is not a discourse of pricing method, just a discussion of the new realities involved in an overpriced home.
- You have wasted your biggest opportunity. A new house on the market gets a lot of attention. You will get more viewers the 1st 2 weeks than you may the following 6 weeks. Buyers have auto-searches for "New on the Market". If not priced correctly, you will be passed over by this large group of buyers.
- It is just going to sit there; itss not going to be shown. You are assuming that buyers and their Realtors are stupid and don't know it's overpriced. Well, they do know and they do not want to waste time.
- You're wasting valuable time. Time passes. Buyers make offers on houses, but not yours. The perfect buyer might be making his decision now, and you aren't even on his radar screen.
- You are making other Sellers happy. Your expensive home makes theirs more attractive. You help sell your neighbor's house instead of your own.
- Your house develops a stigma. People 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 reality is they will not make an offer...they just won't!. In fact , they won't even visit the house.
- Appraisal: Let's assume a purchaser comes out of the hills, sees your house and is willing to pay your inflated price. Will it appraise? No...the appraiser is not coming out of the hills. He knows an over-priced home when he sees it, and his job is to protect the bank from lending too much.
Those are the difficultiess, the new realities of overpricing your house. It is your property, you can do what you want, but get good 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.