When you choose to work with a Realtor®, they’ll know the importance of pricing your home properly the first time. If the price is too high, your home will linger on the market for months. If the price is too low, you may be leaving thousands of dollars on the table. Here are some of the reasons why pricing your home incorrectly the first time could lead to it sitting on the market for many months.
Delaying or Preventing the Sale
An unrealistic price may prevent or delay the sale of your home. You may choose to lower your price later, but by that time you may miss many of the most interested buyers. If your home sits on the market for too long, it will begin to get “stale”. Buyers may think that there is something wrong the longer the house sits on the market. If your home has been on the market for months to years, you may be inclined to lower the price below competing houses in order to ensure a quick sale. The first 30 days your home is on the market is key. Chances are when your home is priced properly, this is when you will receive an offer.
When your home is priced right, buyers will want to view it and the property doesn’t raise questions as to why it has been on the market for so long.
Little to No Showings
At the appropriate price, you will have many showings from qualified and excited buyers. In turn, if your home is overpriced, you will likely have little to no showings. Those who look may be disappointed and many qualified buyers won’t look. The value of the property is seen by buyers when they are comparing properties in a similar price range. If a property has been on the market for far longer, they may decide against considering that property.
Showings are important because in order to sell your home, it needs to be seen! The more showings you have, the better your chances are of securing a buyer.
Potential Buyer May Not Bother or Hesitate To Write an Offer
This is true for homes that are overpriced. Some of the reasons they may write an offer are:
- They don’t want to offend the seller by offering at a price substantially lower than what the home is listed for.
- They may think that if the seller was willing to sell for less, they would have listed at a lower/ more reasonable price.
- They may assume that the seller has already turned away any low ball offers because of the time it has been on the market.
You may lower your price later, but by that time you may miss many of the most interested buyers.
It’s important to listen to your Realtor® when it comes to the listing price. You will most likely have emotional ties to your home and it is important not to let that get in the way. Even if you think your house is the best on the market, you should look at similar houses in the neighbourhood and see what they are priced at. You don’t want to make the mistake of helping the competition by over pricing your home.