6 Top Reasons Why You Dont Want To Overprice Your Home

Dated: 07/26/2015

Views: 542

 

6 Top Reasons Why You Don’t Want to Overprice Your Home. As you consider selling your home, We at Realty Executives Hometowne thought you might be interested in understanding the dangers of overpricing:

    1. Discourages possible offers – An overpriced home discourages prospective buyers from making offers, if the difference between the asking price and the todays market value is substantial. Many buyers choose not to waste their time on overpriced homes, and prefer to spend their energy looking at homes that appear to be a good value.
     

    2. Lost inquiries and showings – Buyers who learn about the house for sale through signs, flyers or other advertising media will be discouraged with overpriced homes, and will not even inquire about them, nor seek showings. As well, the Buyers agent will concentrate showings based on the stated price-range preferences of the buyers. Just think of your own buying experiences. If you feel you are looking at something that is over priced, you will usually keep looking until you find a better value, and, you will not appreciate or continue to work with a sales agent who keeps recommending overpriced homes to you.

    3. Low appraisal versus sale price – Homes that are being financed by buyers must be appraised by the lender. If a home appraises below the buyers offered purchase price, the sale can be endangered… When a home does not appraise, several lenders will penalize the buyer for over paying. It is not unusual for the lender to increase their interest rate, size of the down payment, or deny the loan altogether. This in itself can kill the sale.

    4. Helps sell other homes – by overpricing your home you help sell your neighbors house by showing the buyers what a great value “THEIR” home is. This does not help your situation.

    5. Lack of showings – Buyers will avoid seeing a home they feel is overpriced.

    6. Lower proceeds for seller – it is proven that sellers who chase the market (by overpricing) versus sellers who are more aggressive with their pricing from the get go, end up selling their homes for much less, in the long run. As well, an aggressive sales price moves the home more quickly, thus reducing expensive holding costs.

    Please call me directly at 810-292-2484 with any questions you may about selling your home.

    Thanks, Don

    Image title




               Don Egypt

               Realty Executives Hometowne

Blog author image

Don Egypt

Don Egypt is a professional Realtor with years of experience representing purchasers, sellers, institutions and investors. His knowledge and extensive experience in residential, new construction, luxu....

Latest Blog Posts

Jul 20 2018 14025 1

 What You Need to Know About the Mortgage Process [INFOGRAPHIC]Some Highlights: Many buyers are purchasing a home with a down payment as little as 3%. You may already qualify for a

Read More

Jul 9 2018 14025 1

 The #1 Reason to List Your House for Sale NOW!If you are debating whether or not to list your house for sale this year, here is the #1 reason not to wait!Buyer Demand Continues to Outpace the

Read More

Why Join Realty Executives

Why Realty Executives?There are a lot of agents right now looking to keep more of their commission in their pocket. Realty Executives was the first 100% commission model company in the(

Read More

Check Out This Great Deal

Buy or Sell with an Executive and use our Moving Truck for FREE!!!!!Exclusively at Realty Executives Home

Read More