Overpricing a home is one of the biggest mistakes you can make in real estate. Successfully selling a home for the highest price in the shortest amount of time is a combination of great photos, marketing/exposure, and the proper asking price. When you put your home on the market and put too high of an asking price on the home, the home then sits on the market forever and is one of the hardest things to recover from even if you reduce it in the future.
Sellers always seem to think that their home is the best home on the block. It is human nature to think their home is worth more than their neighbors even though they are similar models and sizes. Sometimes a seller’s misguided belief is caused by a real estate agent who has intentionally mislead the seller in order to get the listing. There are agents out there that will say whatever it takes to get the listing.
Some of the best advice that I give to sellers is to interview agents and choose an agent that does not need your business. The agent who does a lot of transactions cares, but they are the one who will be completely honest with you and give you the proper pricing. The agent who is worried about where their next source of business comes from is the one who may intentionally mislead you so they can get the listing and then work on getting price reduction after price reduction.
How do you know your home is overpriced?
You calculated your asking price by carefully considering what you paid for the property and ignore the fact that the market has been down for 4 of the last 5 years.
You calculated your asking price by what you have paid for the property and then added on for the improvements you made such as a new septic system so the toilets flush. Buyers expect to be able to go to the bathroom.
You have interviewed a couple real estate agents and didn’t like them. You continued to interview until you found an agent that agrees with your price and oh she is the best agent ever!
While you have had 2 showings in a year, the homes down the street from you have a constant flow of showings and keep selling. You assume all buyers and real estate agents are lying when they give feedback that the price is too high.
Your home has been on the market for 364 days. You are a couple days away from your anniversary. In that time you celebrated a birthday-Happy Birthday!, 4 seasons, and 9 holidays. Here comes that spring market! Again…
You start asking your agent to put ads in the newspaper because the internet is just a passing fad.
You want open houses all day every weekend. You are betting the entire house on the chance that 0.01% of buyers who buy from an open houses will buy your home because that’s how you did it 30 years ago.
Ok, I mixed in a little sarcasm. But in reality, I hear these things from sellers who want to know why their agent has not sold their home. If you have not been getting many showings or offers and your feedback keeps coming back with overpriced then more than likely your home is overpriced. Sellers set asking prices but the market price is set by buyers. A home is only worth what someone is willing to pay for it.
There are times when price is not the issue. Sometimes, your real estate agent’s photos are lousy. Other times the description needs a lot of help. Did you know that “Nice colonial four bedroom home” does not make someone want to see the home? Sometimes it comes down to the lack of internet exposure, staging, as well as you not allowing the showing. How is a buyer supposed to make you an offer when you will not let them in to see your home?
If you truly want to sell your home and get top dollar than you should work with someone who has a great track record. It pays to interview agents and ask questions. Successful agents know their numbers and the market’s numbers. I suggest before you hire a real estate agent research your agent on Zillow and see how many homes they sell and read their reviews as there are a few agents who act like Pinocchio just to get the listing. A good agent is not one who will overprice your home and then ask for price reduction after price reduction.
Please contact me if you have any real estate questions. We are always a call, text, or email away. If your home is currently listed with another broker this is not a solicitation. We recommend that you interview agents and select the top realtor and neighborhood expert in South Jersey to give you the maximum exposure, top notch marketing, and sell for the highest possible price for your home.