If Your House’s Price Is Not Compelling, It’s Not Selling

If Your House’s Price Is Not Compelling, It’s Not Selling

When selling your house, one critical mistake to avoid is setting your price too high. While it might seem like a good strategy to overprice your home to leave room for negotiation or to increase your profit, this approach often leads to adverse outcomes.

In fact, according to Realtor.com, nearly 20% of sellers—that's one in five—end up having to lower their price to make a sale. You definitely don't want to be in that position. Starting with a price that's too high can deter potential buyers, leading to a longer time on the market and possibly necessitating price reductions later. Here's why setting an excessively high price from the start can lead to complications, and how you can avoid this pitfall.

Overpricing Pushes Buyers Away

With current mortgage rates and home prices, buyers are already extending their budgets to afford a home. Therefore, when they encounter a house priced too high, they typically aren't thinking about the potential to negotiate. Instead, they are more likely to simply move on to the next listing. Overpricing can quickly deter potential buyers, who might dismiss your property without considering a purchase. The National Association of Realtors (NAR) elaborates on this issue in one of their articles, explaining how critical accurate pricing is in attracting serious buyers.

“Some sellers are pricing their homes higher than ever just because they can, but this may drive away serious buyers . . .”

If potential buyers skip over your listing due to high pricing, you'll miss the opportunity to show them your home. This can result in fewer showings and, consequently, fewer chances to receive offers. It's crucial to price your home competitively to maximize interest and potential bids.

The Longer Your House Sits, the More Skeptical Buyers Will Get

Another problem with overpricing your home is that it tends to sit on the market longer. When a house remains unsold for an extended period, potential buyers may start to speculate about possible issues. They might wonder if there's something wrong with the house itself, or if the seller is difficult to negotiate with. Even if the price is the sole issue, the prolonged market time can foster doubts and hesitation among buyers. As highlighted by U.S. News:

“. . . setting an unrealistically high price with the idea that you can come down later doesn’t work in real estate . . . A home that’s overpriced in the beginning tends to stay on the market longer, even after the price is cut, because buyers think there must be something wrong with it.”

At that point, if your house has been on the market for a while without attracting buyers, you may have no choice but to lower the price to drum up interest. However, this price reduction can also be problematic as buyers might perceive it as a red flag, suggesting there could be something wrong with the house. This perception can further complicate your efforts to sell.

The Key To Finding the Right Price for Your House

The key to avoiding these common pitfalls when selling your home is straightforward: collaborate with a knowledgeable local real estate agent who deeply understands the market and will provide honest feedback about setting the right price for your house.

You should avoid partnering with an agent who merely agrees with any suggested price without proper assessment; such an approach won't yield the best results. Instead, you want an agent who bases their pricing recommendation on their market expertise and real-time local data. The ideal agent will help you determine a competitive price that attracts buyers while ensuring you achieve a favorable return on your investment. Look for someone with a proven track record of success who can expertly navigate the complexities of the real estate market. This is the type of agent you'll want by your side.

Bottom Line

Remember, if the price isn't compelling, it's not selling. Instead of setting it too high and deterring potential buyers, collaborate with a local agent who understands how to price your home effectively.

Let's team up to ensure your house enters the market at the right price, attracts attention, and sells quickly.