If you are considering selling your house, you might see this spring season as the ideal time – and you are correct. Currently, we are experiencing a seller's market due to the limited number of homes available for sale. Traditionally, this period sees an increase in buyer activity and competition. This creates an opportune moment to list your property for sale.
Even though the market favors sellers like you, it is crucial to be strategic when determining your asking price. Overpricing your house could have negative consequences in the long term.
The Drawbacks of Setting Your House Price Too High
The asking price of your home communicates a message to prospective buyers. The price and the accompanying photos play a crucial role in shaping their initial perception from the moment they come across your listing. Setting the price too high might deter potential buyers, as highlighted in an article from U.S. News Real Estate:
“Even in a hot market where there are more buyers than houses available for sale, buyers aren't going to pay attention to a home with an inflated asking price.”
Homebuyers aim to avoid overpaying, especially in the current market. With home prices rising and mortgage rates increasing, many are cautious about their budget. If they perceive your house as overpriced, they might dismiss it without visiting or refrain from making an offer if they believe the price is too high.
If this scenario occurs, it will prolong the selling process. Ideally, you want to avoid needing to reduce the price to regain interest in your property. Why? Lowering the price might raise concerns for potential buyers, making them question why the price was decreased or speculate about issues with the house if it remains on the market for an extended period. An article in Forbes elaborates on this:
“It’s not only the price of an overpriced home that turns buyers off. There’s also another negative component that kicks in. . . . if your listing just sits there and accumulates days on the market, it will not be a good look. . . . buyers won’t necessarily ask anyone what’s wrong with the home. They’ll just assume that something is indeed wrong, and will skip over the property and view more recent listings.”
The Role of Your Agent in Establishing the Correct Price
Instead of setting the price too high, starting with the current market value or slightly below is a more effective strategy. To determine the ideal asking price, seek assistance from professionals. Real estate agents have the expertise required to research and determine the current market value of your home.
They will consider your house's condition, any improvements you have done, and the selling prices of similar houses in your vicinity. By analyzing this data, they will determine the ideal price. Setting the correct price attracts more buyers and increases the chances of receiving multiple offers. Additionally, appropriately priced homes tend to sell swiftly.
Bottom Line
While aiming for a high selling price is understandable, pricing your property too steeply could discourage potential buyers and prolong the selling process.
Let's collaborate to determine the optimal price for your home. This way, we can enhance your profit while attracting enthusiastic buyers who are ready to make compelling offers.