Is Your Home Priced Too High?

Do you want to get top dollar for your home? Of course! Your Realtor® does too. Their job is to get your home sold for as much money as possible. However, when listing a house, sellers may be tempted and even insist on listing their home at a price that is way above market value. They think their home is worth more for various reasons…because they have done certain home improvements, or that it leaves more room for negotiation. Overpricing usually proves to be a mistake, sometimes a costly one.

Realtors® set up searches on their local multiple listing service for interested buyers based on the buyer’s criteria and budget. If your home is priced above what a buyer is ready to pay, it will not come up in that specific search at all. When homes are first listed for sale the most activity usually takes place in the first two weeks on the market but your house may be overlooked all together if it’s priced too high.

Even if a Realtor® does bring a potential buyer to your home, they may get discouraged and think they can’t afford it based on the price, or they may think that the seller is not motivated or ready to sell. Also, if your home is priced high and a similar home just down the street is priced more competitively, guess which one will probably get more interest and more showings and ultimately more offers?

So how does a Realtor® determine the price in which to list your home? Realtors® will do a comparative market analysis (CMA) which is a comparison of similar homes in the same neighborhood that have sold recently or are currently under contract. The list price is determined based on those figures. A good price can then be established on what the current market will bear for that house in that particular area.

As homes linger on the market, interest tends to wane and sometimes a lower sales price is obtained than originally hoped for. The smart choice is to hire a Realtor® who will price your home properly from the beginning. It’s a mistake to waste valuable market time.