Aviod overpricing pitfallsJanuary 15, 2008
Overpricing is a common blunder committed by many an anxious seller and some real estate agents. With so much riding on the outcome of the sale, it’s a mistake easily made, but it can be a costly one. When shopping for a home, the majority of buyers consider the price first. If it is overpriced they will go elsewhere or wait for a price reduction. In the meantime the property will sit on the market. The best opportunity to sell your home is in the first 30 days after it is listed for sale. If it does not sell in that “new on the market” period, buyers begin to think there is something wrong with it.
There are many reasons sellers mistakenly overprice their homes. Inadequate information and lack of experience cause many people to misinterpret market conditions. Perhaps the owner elected to make expensive improvements with the intention of increasing the property’s value, but the renovations cost more than the return on the investment. Or maybe the owner purchased the house at an inflated price and is trying to compensate for overpaying. Sometimes people choose to overprice their home with the intention of bargaining later.
Since properties generate the most consumer interest when they first appear on the market; it is critical to rely on the expertise of a professional real estate agent who can provide you with a comparative market analysis, and help you determine a fair and competitive price for your home.