One of the biggest mistakes consumers make is confusing price with costs or property value. Buyers want to make sure they are paying fair price for a home. Today’s sellers must realize that their home is worth what a buyer will PAY for it.
Here’s 6 tell-tale signs that a house is overpriced:
- HIGHEST PRICE ON THE BLOCK. When Realtors recommend a sale price, they use comparables – houses of a similar size, with similar features in a similar neighborhood. If a house is priced significantly higher than what a Realtor can find for sale that’s comparable, it’s likely the home is priced too high.
- DAYS ON MARKET. If a home sits on the market for much longer than the average of other homes, it may be overpriced. For example, if the average days on market for homes in the same price range is 60 days, and this house is still on the market after for months, it’s a good sign the house might be overpriced.
- NO OFFERS. Although one assumes that overeager buyers are indicative that the price is low, competitive offers are more likely indicative of a reasonably priced home.
- CHOOSE THE HIGHEST SALE PRICE. If you spoke to several Realtors and hired the one who recommended the highest price for your home, it may be overpriced. If you have met with several Realtors and you consistently hear a ballpark price that seems low to you, the price may be right. Realtors know the real estate market.
- NO SCHEDULED SHOWINGS. Immediately after the home hits the market, there should be at least a few appointments for showings. If there aren’t, it might indicate that the home is overpriced and therefore buyers are not lining up to see it.
- PRICEY OPTIONS. If a house is priced to try to recoup the cost of expensive, unique amenities, it might be overpriced. Just because such options are in a home, it does not mean it’s worth more money.
If there is very limited interest in the home after one month, it’s not too late to reduce the price, but it’s important to act quickly in order to sustain some interest.
Call Charles Rutenberg at anytime if you have questions on how to price your home, how to find out if it’s currently overpriced or if you have questions about buying a home.
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