The Real Cost of Overpricing Your House

By Jenny Mateyoke

As your professional real estate advisor, I focus on client satisfaction. My business is about service and I am not happy until you are happy. My years in the business have provided me the experience to assist you with nearly every real estate need.

When selling your home, the pricing can either attract tons of buyers—or none at all. Listing your home at too high a price may be tempting, especially now that it’s spring season and real estate competition is starting to pick up, but it still isn’t a good idea. That’s why today, I’m sharing with you the top three reasons why overpricing is a bad idea:

1. Overpricing deters potential buyers. Before buying a home, buyers typically look at two things first: the price and the photos. Taking into consideration the ongoing price appreciation and steep mortgage rates, buyers may limit their budget within a certain price range. If your listing is priced too high, it may turn people away without even seeing your property.

2. Pricing too high eventually leads to less money. If buyers think that your house is overpriced, they may never even consider stepping inside your home, much less making an offer. When that happens, it will slow down the sales process and will likely lead you to do a drastic price drop just to rekindle people’s interest in your property.

3. Overpriced listings tend to stagnate on the market. If you think by now that overpricing is the only factor that turns buyers off, you’re wrong. If your property sits too long in the market, it will leave a negative impression on buyers. They may no longer think about inquiring why the property has not yet been sold. Instead, they will likely just assume that there’s a problem with the property and move on to another one.

Considering the money you’ve invested in your property, it’s understandable that you want to sell your home at a high price. However, selling the listing at just below market value from the start is a better strategy and will help it sell faster.

Hiring a professional real estate agent will help you arrive at a more accurate pricing strategy based on the current value of your home. Real estate professionals like myself have the expertise and experience to look at all the factors that go into pricing your home, such as the condition of your house, any upgrades you’ve made, as well as the current market price of other properties in your area. If you’re planning to sell your home and need expert advice on how to maximize your profit, call or email me, and I’ll be more than happy to help!