The popular adage says, “Home is where the heart is”. However, in home selling, it is also where debts or wealth could be. Pricing is a critical factor in the real estate market and it is imperative that you set the ideal and right price for your property.
Sadly, most home sellers, especially those first- timers, tend to overprice with the belief that their house is worth exactly their expectations. In reality, it isn’t. Instead, it could harm your sale and gives you costly consequences. Worst, you won’t able to sell your home.
How to Tell If a House is Overpriced?
If you are selling your home and experiencing these 8 warning signs then you have probably priced your property higher than the average market value.
1. Your Price is Higher than the Neighborhood
Make sure that your house is priced relatively closer to your neighborhood. If your house was listed thousands of dollars higher than the nearby market, then you will probably get frustrated with the results.
Usually, what happens is your neighbor’s houses are selling faster while yours is not. If this happens, lower your price according to the comparative market analysis. This study analyzes the prices of the homes sold in the nearby area for the past 6 months. With this, you will get the most competitive value for your property.
2. Rare or No Scheduled Showings
As a home seller, you are excited for your property’s sale though it could frustrate you if it receives less to no request for scheduled showings.
The first few days of your live listing should have the most engagement, however, if you have priced your property higher than the fair market value, the likelihood that buyers will miss it.
Usually, buyers and agents will set up notification alerts in case a listing meets their requirements. This includes the house area, number or rooms, and of course the price. Although you have met most of these features, but your price is not within their range, the less likely they will see your listing.
If your listing has been stagnant for a week or more and you received few requests for showing, then try to adjust the price down. You will be surprised by the results after you’ve made the changes.
3. No Offers Received
In the real estate game, home sellers would commonly receive offers two to three weeks after they posted their listing. If you haven’t received anything for months, then suspect something is wrong on your sale. Most probably, it is the price.
Sky-high price will scare off buyers. In fact, with your price higher, you are making low- priced properties more attractive, which help them sell faster.
While some buyers still show interest to your house, they would still prefer another similar home that price lesser than you.
Others would also get offers especially if the real estate market is high and if the property was priced correctly. If this happens, do not miss the opportunity. Generate more offers by setting the most competitive price for your home.
4. Few to No Visits During the Open House
As the homeowner, you have the discretion to do an open house or not. Open house enables probable home buyers to personally see your home and have a feel of it without any pressure. This is an ideal way to market your house.
However, if you scheduled an open house and no one walk in to see your property, then make an assessment. You will find out that your house was overpriced.
5. Low Internet Traffic and Property Inquiries
Today, home buyers opt to search the internet for the latest house for sale nearby. It’s easier for them to check which of the listed properties qualify their parameters and once they like your home, they will surely reach out to you for further information or even set a private viewing schedule.
If your property is within their specifications, the home listing will likely to receive more traffic. You would also get phone calls from strangers inquiring about your house for sale. While this can happen, it is also possible that you get less to no traffic and phone calls at all.
Make sure to set a home’s price that is within the range of the market as overpricing will hurt you in the long run. Set the most competitive market price as it helps to see your property in the search results.
6. Gets Low Ball Offer
It is seldom for a high-priced property to get offers. If this happens, you are, in some way, is fortunate.
Typically, over priced properties get lowball offers. This happens when buyers tend to negotiate a lower offer than your acceptable price. This is normal but if you received several of this kind, you might as well reconsider your price.
Avoid these low ball offers by studying the market and cutting down your price based on the comparative market analysis.
7. Appraisal Issues
You have found a buyer that is willing to pay for your property. No negotiations whatsoever. She wants the place, your house amenities, and everything in between. However, to seal the deal, she needs to borrow money from the bank.
All banks require an appraisal. So your property is not an exception. A local appraiser will visit and make an estimation of your house accordingly. The valuation is based on the market rules, not on what you think your house deserves or the intensity of the sellers liking to buy your property.
Once the appraiser found out that your house has lower value compared to your selling price, the bank will for sure decline the mortgage. This results in no sale at all.
Sell your house fast by giving the fairest and competitive price to meet the client and bank’s requirements.
8. Listing Expires
The most apparent sign of an overpriced property is when your listing has expired without any progress and good news of sales. The higher your price is compared to your neighboring real estate, the longer your property will sit in the market. The longer it sits, the more vulnerable it becomes to being stale.
Once buyers learned that your listing has been on the market longer than the average listing, they would instantly suspect something is off beam with your property.
Pricing too high has always a risk. You don’t want your listing to sit longer, or worse, wait until it totally expires. If your listing expires, don’t blame the buyers as to not they are ready or willing to buy your house.
The major issue is on your house’s price tag. To sell your house faster, lower your price that is acceptable to home buyers. You will likely to close a deal in less time.
Observe these warning signs during your house selling. If these happen, never have doubt to lower your asking price. It won’t harm you, anyway. It will instead give way to more home buyers to your property and seal the deal.
If pricing your house is your weakness, let The Home Buyers work for you. We are real estate professionals, who have dealt with several home sellers. We are happy to serve our clients and help them get the best deal for their houses.