Pricing your house too high is a very common mistake in real estate but is all to often overlooked or ignored. The average days on market for a house in the US is 40 but if your house is priced over market value it can stay on the market for months or even not sell at all. Don’t ignore the signs that your house is priced too high.
Your Agent Suggests A Lower Selling Price.
This may seem pretty obvious but it’s all too easy to ignore. Your real estate agent has most likely had experience in the market so when they suggest a listing price it is most likely fairly close to what your house will sell for. However, agents will usually not force the issue out of fear of losing your listing.
On the other hand, sometimes an agent will tell you that you can get more than the market value of your home if you list with them. Be cautious of agents that tell you this because they may not know the market as well as they say.
Having A Lot Of Showing But No Offers.
One common misconception about selling a house is that if the buyer is interest in the property they will make an offer even the house is overpriced but that is not always true. Many times if the house is overpriced the buyers will not waste their time making an offer on a property that is not likely to be accepted.
So if your home has been shown to a lot of potential buyers and you haven’t received any offer its very likely that your home is overpriced and you will need to address this as soon as possible.
Other Houses Are Selling For Less.
One of the biggest tools real estate agents use to find the value of a house is by running comps. This is where the agent finds other similar properties that have sold in your area and make adjustments for different features that your house does or doesn’t have. For example if the comparable property has less square footage or one less bedroom than an adjustment should be made to the sales price of your property.
If there are other houses that are similar to yours in your area that are selling for less than your this will bring down the value of your house and you will need to make adjustments to account for this. It is also important to note that it is not good practice to find comparables that have not sold. Just because a property is listed for one price it will not necessarily sell for that amount.
If Your House Has Been For Sale For A While.
This may seem pretty obvious but it is relative to the market that you are in. Some markets are hot and your house will sell almost as fast as you list it. Other markets are slow and it takes a long time to sell. The price range of your house also has a lot to do with how long it takes to sell. As a general rule more expensive houses usually take longer to sell.
So if your house has been on the market for a while there is a possibility that it has nothing to do with the price of the house. On the other hand, if you are in a hot market and your home has been listed for a long time than the price of your house is too high.
Buyers Tell You The Price Is Too High.
If you have one buyer say that your house is priced too high I wouldn’t take it too seriously. However, if you have multiple buyers and agents telling you that the price is high there is a good chance that your house is overpriced.
This is a problem because not only will you not generate much interest but if you do come to an agreement with a conventional buyer there will be a bank appraisal of your house and the bank will only lend on the amount that the home appraises for.
It can sometimes be hard to know the true value of your house especially if there are few comparables in your area. If you are having trouble selling your house or finding the value of your home Savvi Buys Houses can help. Just call and schedule an appointment. We’ll come out and make you a cash offer for your property.