There are three main pitfalls to incorrectly pricing your home. Here’s why each is a mistake you don’t want to make.
I began selling real estate in 2002, so I’ve seen plenty of mistakes made in the real estate world. There are three main pitfalls you can experience from pricing your home incorrectly for the market:
1. Your home can become the pivot house. This is where an agent is showing the property, knowing it’s priced too high for the market. While they’re in the home, they’ll say to their buyers something like: “If you’re fond of this house at this price, wait until you see the next one that’s similar but costs less.” Buyers will walk into your home and soon pivot and leave. If yours is the pivot house, you’re simply helping the competition sell.
2. You’ll sit on the market. When a home sits on the market for an extended period or longer than the average days on market, buyers start to ask questions like “What’s wrong with that house?” The property could end up with a stigma; you don’t want buyers asking that question about your home. Buyers may also ask if the house is overpriced. When this question is asked, if the buyer is interested, you’ll likely receive lowball offers.
3. Only getting one offer. 80% to 90% of buyers have to get a mortgage to purchase a home, so their lender will order an appraisal. If the appraisal comes in low, that can cause drama for the seller. When you’re in the middle of a transaction and moving your family, who needs more trouble?
If you want to know the true value of your property and how to sell it for the right price, know that we’re here to serve. Call or email us if you have real estate needs or questions. We would love to help you.