The most common reason a home doesn’t sell is because it is overpriced. If you’re selling your home, you need to understand that pricing your home correctly from the beginning is absolutely critical.
How do you know if your home is overpriced? There are actually many tell tale signs to know if what you are asking does not meet market expectations.
Here are the top signs that your home is priced too high.
Your Home Is Priced Much Higher Than Your Neighbors
in most neighborhoods, home values will be relatively consistent and close. Your home is overpriced if it’s listed much higher than other homes for sale in your neighborhood. One of the most common methods that real estate agents will use to determine a homes value is by completing a comparative market analysis. A comparative market analysis, also known as a CMA, is best described as a detailed analysis of sold homes in the past 6 month time period in a given neighborhood.
You’ve Had Very Few Or No Showings
If your home has been listed for sale for a few weeks and you’ve had only a couple showings, you need adjust the price to generate some activity and showings.
You Haven’t Received An Offer
If you haven’t received an offer after a couple of months, your home is most likely overpriced.
You Hired The Agent Who Recommended A Much Higher Price
When you are interviewing prospective Realtors to sell your home, it’s important that you know what questions you should ask during an interview. One of the most important questions relates to the pricing. It’s critical you understand how the prospective real estate agent came up with the listing price of your home. If you hired the real estate agent who suggested a much higher listing price, it’s very likely your home is priced higher than it should be.
Neighbors Homes Are Selling & Yours Is Not
One of the most frustrating things for a seller is when the neighboring homes are selling and theirs is not. If you’re selling your home and this is happening, this is a sign that your home is priced too high. If this sounds familiar, a couple things to keep in mind when it comes to comparing your home to your neighbors include;
Was your neighbors home a different style of residence? Was your neighbors home larger? Did your neighbors home have high end upgrades and amenities? Is the location of your home inferior or superior to your neighbors?
Showing Feedback Indicates Your Home Is Overpriced
One of the biggest benefits to hiring a Realtor is they know the importance of receiving feedback on their listings. Feedback from other real estate agents as well as buyers who are viewing a property can be a huge help. If the feedback from showings is that a home is overpriced, this gives you the opportunity to make an adjustment in the price.
Bottom Line…the number one reason a home sells is because the price was right!
If you’re selling your home and have experienced any of the signs below – talk with your Realtor and make an adjustment as soon as possible!
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