The Right Price
If you want to sell your home you have to price it correctly. Even if you property is in perfect condition and marketed well, a lack of offers indicates that it might be overpriced. Here are some warning signs of overpricing:
No Second Showings:
Agents and buyers usually want to see your house as soon as it hits the market. If nobody returns for a second look, it may indicate that your house could be overpriced.
Lots of Showings but No Offers:
Imagine yourself as a buyer. Your agent shows you several houses with the same asking price. You are most likely to make an offer on the one with the best features, upgrades, and extras, right? The agent doesn't have to say anything; the difference between price and value is obvious. Overpriced listings do not sell, but they do help to sell well-priced houses by comparison.
How to Avoid Overpricing
Always get a comparative market analysis from a qualified Realtor.
Make sure that the properties are truly comparable to yours in terms of location, features, and amenities.
Set realistic expectations based on actual sales data.
Time your sale – more homes sell in the Spring & Summer than in Autumn or Winter.
How Does This Happen?
It's tough to precisely establish the value of attributes, such as proximity to bus lines, wonderful landscaping, and views. You, or your listing agent, may have given your house's amenities a much higher value than buyers do.
You, or your listing agent, may have compared asking prices instead of actual sold prices.
Foreclosures or short sales in your neighborhood can decrease the value of all the homes nearby.
You, or your listing agent, may have used inaccurate sales data. Maybe some sale prices of comparable houses didn't reflect big credits in escrow from sellers to buyers for corrective work or nonrecurring closing costs.
You may have missed the prime selling time. Every real estate market has peaks and valleys of sales activity. If you base your price on sales closed in August, but put your house on the market in November, you will either need to reduce your price or take your house off the market until buyers return in the spring.
97 percent of all property sells within 10 percent of its final asking price. Often, several price reductions occur before a seller arrives at a correct asking price, which is within 10 percent of fair market value.
How to Correct Overpricing
Study the market carefully to determine your home’s fair market value.
Work with a licensed Realtor to reduce your price to within 10% of fair market value.
Consider taking your home off the market temporarily until conditions are more favorable.
Be willing to negotiate with your buyers. Don’t forget that there are many negotiable parts of the real estate contract besides price that can work in your favor. Discuss all offers with your Realtor.