How You Can Tell Your Home is Overpriced
You’ve heard about how competitive the Naples market is and were sure that once you put your home up for sale, the offers would pour in. But they haven’t, have they? Maybe you’ve had showings but no offers. Maybe you haven’t even had showings. The last open house was nothing but neighbors who wanted to look around.
Why isn’t your home selling? It might be that it wasn’t priced correctly when you listed it.
What are the Warning Signs?
If you live in a neighborhood where every house sells quickly, or you’re in a part of the market that is desperate for listings, and your home isn’t selling, there’s a problem. How can you tell that the price may be an issue?
- Realtors don’t preview your home. Your agent isn’t receiving calls about it from anyone.
- Maybe they do preview it, but they don’t make appointments to show it to their buyers.
- Okay, so it’s gets shown to a buyer or two, but no one puts in an offer.
Unless you’ve done absolutely nothing for your home’s curb appeal, the problem is usually in the price. Good buyers agents are letting their clients know when a home isn’t competitive on price. If you overprice too much, no one will put in the “lowball” offer that’s in line with the market because they assume you’d never take it. Instead, agents show their customers homes in their price range or a better value for the money.
What are the Dangers of Overpricing?
The dangers of not pricing your home correctly aren’t just that you don’t get offers or even showings. There are some very real consequences that hit you right in the wallet. A home that is priced correctly sells for a higher net and with fewer hassles. The longer your home is on the market, the less money you get for it:
- Less than 4 weeks: Up to 100 percent of asking price
- 4-12 weeks: 5 percent less than asking price
- 13-24 weeks: 6.5 percent less than asking price
- 24 weeks or longer: 10 percent less than asking price
This is a big danger to you as a seller, and it comes with additional consequences.
- Overpricing lowers buyer and agent response to your listing.
- Profits are minimized.
- Your home and listing get a reputation - especially when it sits on the market for weeks. People want to know what’s “wrong” with it.
- Your risk of problems with the appraisal go up.
- You’re frustrated and inconvenienced with nothing to show for it. Every new showing raises false hopes.
Your home selling experience shouldn’t be like this. When your home is presented well and priced right, offers come in quicker and deals are easier to make. If this is you, when your current listing expires, it may be time to go in a different direction. If you want to avoid this from happening when you’re ready to sell, work with an agent who understands the market and can help you avoid overpricing. Contact me and let’s talk.