9 Reasons NOT to Overprice Your Home

All too often, I hear the frustrations of colleagues about a homeowner that is unwilling to price their home correctly, despite the agent's ignored pleas. I have met plenty of homeowners that want the higher price, or the maximum of the range I give with my home market evaluations. Why wouldn't they? I have even gone to efforts to create strategies that deal with this type of listing scenario. But as a seller, there are some reasons to take your agent's pleas as honest and coming from a good place.

A seller's unwillingness to price a home correctly, leaves the Realtor frustrated, and more disconnected from the sale of the listing. Their knowledge of the real estate market is limited, so consider the following when pricing your home. Here are 9 reasons not to overprice your home for sale: ​​

1

Price Reductions - Eventually your Realtor will have to convince you to reduce the price. Now you are chasing the market instead of being competitive with the other homes in the area.

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2

Seller Not Serious - By overpricing, the Buyer may think that the seller is testing the market and not serious, or that there might be a major defect with the property.

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3

Few to No Showings - Realtors and Buyers are both pretty aware of the market prices so if your home is overpriced, they will just not show it at all.

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4

Limits the Number of Buyers - By overpricing your home, you cut out good Buyers that are qualified below that amount.  When the price finally gets corrected, these Buyers have moved on.

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5

Failed Negotiations - Buyers may put in a lower offer, but if the Seller is overpriced, the gap is typically too large to agree upon. Homeowners that are locked into a price are more resistant to a drop, even when advised by their Realtor.

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6

Will not Appraise - If it is overpriced, it will not pass the appraisal and the deal may fall through.

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7

Sells the Competition - Buyers will look at 10-20 houses before putting in an offer. If you are too high, they will think the house down the street is priced better. Your overpriced home will make others look better.

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8

Higher Days on the Market - Buyers are always looking for new listings on the market; if your home has a high number of days on the market it will bring up red flags with buyers.

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9

Home Never Sells - Homeowners will frequently get so frustrated that they decide to take the house off the market and not sell at all.

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This advice comes from a good place, the place where it is necessary to get realistic and make good choices. If you are a seller in a tight position, give your home the justice it deserves and price the home accordingly. It will result in reduced stress, and a quicker process. It might even give you leverage during proceeding negotiations. But either way, it will help get the home SOLD.