In our current market, where prices are increasing a little bit each year, sellers want to get as much as they possibly can for their home. However, in order to get top dollar, you need to be strategic when putting a value on your property. Let’s take a look at the 6 dangers of putting too high a price on your home:
1. Fewer showings: Buyers look in price brackets - if you price your home well above what it’s worth, you are losing a lot of potential buyers who will simply pass it up.
2. Help out your competitors: When buyers pass up your home, they look at other homes on the market. If homes similar to yours are priced much lower, buyers will have no problem making an offer on your competitor’s home.
3. Generate most interest within first 30 days: Starting high and coming down later may sound like a foolproof plan, but you are losing out on a lot of buyers by waiting to price your home fairly. The first 30 days are crucial for generating interest in your home - you don’t want to miss that opportunity.
4. Attract the wrong buyers:Because buyers search for homes according to their price bracket, your home will be compared to homes with more features and benefits. The people that will appreciate your home won’t be looking at it.
5. Your home takes longer to sell:When your home sits on the market for a long time, buyers and agents alike start to wonder if there is something wrong with it.
6. Buyers negotiate a lower price: Since your home sat on the market for so long, buyers think they can submit a low offer and buy your home at a low price.
Consider these 6 points when putting a price on your home. It’s a matter of balancing the desire to get a high price and the need to attract buyers to your home. If you have any questions about the pricing process, feel free to give us a call. We would be happy to assist you in any way possible!