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7 Pitfalls of Overpricing Your Home

The best way to increase your odds of a selling your home is to price it at fair market value. But, as logical as this advice sounds, for some home sellers it’s still tempting to tack on a few thousand dollars onto the listing price to “leave room to negotiate.”  To avoid this temptation, here’s 7 reasons why you should avoid overpricing your home:

1. Selling the Competition
Overpricing helps your competition.  How?  You make their lower prices seem like a bargain.  Nothing is worse than watching your neighbors put up a sold sign.

2. No Showings
Today’s Clovis home buyers are well educated about the real estate market.  If your home is overpriced they won’t bother looking at it, let alone make you an offer.

3. Branding Problems
When a new Clovis home hits the market, every agent quickly checks the property out to see if it’s a good fit for their clients.  If your home is branded as “overpriced,” reigniting interest may take drastic measures.

4. Appraisal Problems
Even if you do find a buyer willing to pay an inflated price, the fact is over 90% of Clovis buyers use some kind of financing to pay for their home purchase. If your home won’t appraise for the overinflated purchase
price the sale won’t go through.

5. Stagnation
The longer your home sits on the market, the more likely it is to become “stigmatized” or stale.  Once a home seems to be perpetually for sale, buyers wonder “What’s wrong with that house?”

6. Tougher Negotiations
Buyers who do view your home often negotiate harder because once your home is on the market for a longer period of time (and because it is overpriced compared to the competition) they submit low-ball offers thinking you’re now desperate to sell.

7. Lost Opportunities
You lose a percentage of Clovis buyers because you price them outside of their starting price point.  For example, these are only a certain number of Clovis buyers who are looking in the price range of your home.  By pricing your home higher, you exclude a portion of these Clovis buyers who won’t even see your home because it’s priced above their pre-set budget.

Conclusion

Most Clovis buyers look at 10-15 homes before making a buying decision. Because of this, pricing your home competitively from the start relative to the competition is an essential if you want to sell your home.  We’re here to help you sell your home for the highest possible price.  Fill out the form below and we’ll help you price your home and avoid the 7 Pitfalls of Overpricing Your Home.

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