There is the tendency to feel your home must be worth more, especially when you’ve worked hard to maintain it and possibly even raised your kids there. It’s normal to feel attached to the memories built. Thankfully, no one understands the personal value of a home more than your Realtor. We see clients toil with the huge transition of moving, day in and day out.
Pricing your home is crucial
The adage, "Home is where the heart is", is very true in this instance. When you move to your new home, you move not only your family and furniture, but also all of your memories with you. When you see your memories not as left behind, rather coming with you, you can now make a mental shift from selling your home, to selling your house. This is the first step towards pricing your house correctly.
Pricing your home correctly is crucial, not only in today’s market, but in every market. When you put your home up for sale, you have one goal in mind; to get it SOLD. Here are 5 reasons why overpricing your home hinders you from reaching that exact goal.
1. Lost inquiries and showings – Since research is so readily available, buyers are market experts months before they even start looking at homes. When they see an overpriced property, they’re less likely to inquire. I’m sure you can relate from your own buying experience. When something is overpriced, you typically keep looking until you find a better value.
2. Discourages possible offers – An overpriced property detracts prospective buyers from making offers. Writing an offer 20% (or more) below asking price is less likely to get accepted. Most buyers will invest their time on a home that offers better value for their dollar.
3. Helps sell other homes – Buyers are constantly comparing properties to determine which one offers better value. Overpricing your property will help sell your neighbour’s house. This is probably the last thing you want.
4. Low appraisal value – Depending on how much of a down payment was provided by the purchaser, an appraisal may be computer based, or done by a professional. Either way, most homes must be appraised before a lender will provide financing. If a home appraises below the purchase price, the sale likely will have to be renegotiated to a lower price, or it risks falling apart.
5. Lower proceeds for seller – We’ve unfortunately seen sellers end up selling their homes for much less in the long run simply because they did not price it right from the beginning. On top of that, they’ve endured having higher carrying costs from the extra time on the market.
I fully understand the tendency to want to start with a higher price. When we’ve sold our own home or vehicle, we too experience the exact same desire to want to price it higher. It is a battle every one of us will go through. Thankfully with an integrity driven, hardworking real estate team on your side, we can help you determine what is the right price to sell your home, so that you will net the most money at the end of the day.
Jason Rustand with RE/MAX Real Estate serves with the highest level of integrity and excellence every time. For more info on this topic or others related to real estate contact LIKE our Jason Rustand Team Facebook page, call Jason direct at 780.980.2828, email firstname.lastname@example.org or visit WeSellLeduc.com.