Most home traders or sellers fail to realize how damaging over-pricing their real estate property could be. It’s a common myth that setting a high initial price will eventually lead to a profitable sale. However, exact opposite of it is deemed true.
There’s one piece of advice that each and every real estate agent in the world will give you – “If you overprice your home, it will take longer to sell and you will end up selling the home for less.”
Here are a few common issues and problems that people face when they overprice their residential property. Your wrong and misguided house valuation can make you face these issues as well.
1. When your home first appears on the market, it needs to be appealing and at a price range similar or better to comparable real estate property in your area. If it is not, it may get ignored, or worse, it may get noticed by buyers but placed into a “wait and see” category.
2. Your home may have a few positives and it could be better than other similar properties. But all the positive points might get cancelled out if you over-price the property.
3. Pricing the home fairly will help to avoid more than necessary negotiations to settle at a right price.
4. In cases where property deals are stuck, the seller will either need to reduce the price to complete the deal or the buyer will need to come up with additional funds to make up the difference. This will waste a lot of time and state of market is very dynamic.
5. The perception of your home as a desirable property, or a value, is important in real estate deals. A change in perception on the part of buyers might cause you serious headaches and lose you large amounts of money.