5 Indicators That Your List Price is Too High
If your home’s list price is too much greater than its market value, it can sit on the market for months and months. As little as 3% to 5% over true market price is sometimes too much. Home buyers are pretty connected these days. They can spot an over priced listing and they will not approach you with an offer. They will wait you out or move on to more reasonably priced homes.
In this short post, I will show you the indicators that your home may be priced too high.
The best comparables are priced lower
Selling a home is part science, part luck and part psychology. Typically, high listing prices are the outcome of home sellers including their emotional worth into the price. It is essential to think about the listing price your Realtor suggests. Realtors have considered final list prices of equivalent houses in your neighbourhood prior to identifying the value or your home. If your home is priced over neighbouring properties, you could effectively be asking for greater value than what your home deserves in the eyes of prospective customers.
There is no real magic. The value is the value. Do not ask your agent to preform a miracle.
In the first few weeks of your listing, if you are getting lots of showings but no offers, one possibility is that your listing price is too high. If that is the case, it is time to rethink the present asking price.
Depending on how active your market is, after three or four weeks, the number of showing requests will drop significantly and your listing will become stale unless you lower the price.
There are lots of other factors that can impact the number of showings your home is getting. Maybe the market is slow. Your Realtor should be able to tell you if similar homes to yours have sold recently and for how much. If so, determine if your Realtor is doing everything he or she can to promote your listing. If other homes are selling and yours is not, find out why.
You chose the Realtor who promised to get the highest price
Prior to hiring a Realtor, it’s useful to talk to at the very least three. (Some people interview five or sometimes more). The Realtors’ advised listing prices will typically be comparable, as professional and knowledgeable real estate representatives will certainly think about numerous aspects prior to identifying your home’s value. If you really did not speak with several agents, or you employed the one that recommended the greatest price for your home, this could be a telltale sign that it is listed over its market value.
If several real estate professionals suggest listing at a lower price, maybe that was the ideal price.
Your home does not appeal to the mass market
Just because a home has some special features, that does not suggest that it will have broad appeal or a higher price. Your home may have a swimming pool or hot tub or wood burning fireplace or something else you really enjoy. But not everybody wants what you want in their home. Potential buyers also won’t always see the value in personalized features, especially if they have no interest in them. If your home is customized to your lifestyle, beware that it may be too unique for many buyers.
Figure out the worth of your home, without the unique features, to figure out if a lower listing price would be of value.
Your listing price is the most important thing. Maybe you and your Realtor made a mistake and listed too high. Realtors say that the right price solves all problems. Think about these five signs that your property is listed too high above its value, and adjust as needed.