Overpricing their home is the biggest mistake sellers make, though many don't fully understand the implications of doing so. Here's why overpricing is so problematic.
A property never generates so much interest as it does during its first few weeks on market. When you enter the market overpriced, you squander this time by scaring away buyers and, more crucially, real estate representatives looking for properties to show clients. As a result, you can affect the number of showings during those critical first weeks.
Few to no showings mean few to no offers. And that can potentially mean no sale. Even if you do manage to get an offer, it's possible the buyer won't qualify for financing due to a low appraisal of your home (a side effect of overpricing); again, that means no sale.
Now you face a new problem: stigmatization. The longer a property lingers on the market, and the more times its asking price is slashed, the more people will assume there's something inherently wrong with it. Now they have new reason to stay away.
In the meantime, you're stuck making mortgage payments on a property you'd no doubt planned on having sold already, which can be devastating for those who've already bought their next home.
Desperate, you may be forced to accept any offer, however lowball, that comes your way. It's for this reason that many sellers of overpriced properties often end up getting even less for their homes than they would have had they listed at a competitive price to begin with.
Avoid these pitfalls – contact Paula Mitchell today to ask what price is right for your home!
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