Buying and selling a home is a huge decision and certainly not an easy one. It takes a whole lot of effort to arrange and organize everything and make sure everything is in order before you can finally put out a listing. If you’re selling, you should be aware of one of the most critical aspects of making a sale – the price.
If you overprice your home, homebuyers won’t even give it a second look. Instead, be prepared for your home to languish on the market for long time – the longer it sits, the worse it is for you.
Homes that don’t make a sale on time and continue to sit in the market attract negative association, with homebuyers automatically assuming that something is wrong. Even though technology has levelled the field, by introducing concepts like virtual real estate tours which have made property-related information more accessible, there are certain things that are often overlooked and price is one of them.
While we understand that emotions play a big role when it comes to pricing, sellers need to look at it from the buyers’ perspective. In a thriving real estate market, an overpriced home is not a limitation to buyers – it simply ensures that the seller will make a nice profit and buyers are aware of that. Thankfully, there are a few tell-tale signs indicating that the home you’re eyeing (if you’re a buyer) or the home you’re listing (if you’re a seller) is overpriced. Let’s take a look at what they are!
It is Priced Above Neighbouring Properties
If you think that your home should be priced above you neighbours’ houses just because of ‘how they look from inside’, you’re going about this in the wrong direction. Real estate agents will tell you how often they come across this excuse. The fact remains that location matters. If the price of your home doesn’t match the houses on sale in your neighbourhood, then you have a serious problem.
It Has Been Languishing on the Market
This is another sign of a home being priced too high. If it has been sitting in the market for a long time, it is usually an indication of overpricing. Although, there could be other reasons behind the house not making a sale, but the former remains the common reason. It is worth noting, however, that high-end establishments usually sit on the market longer because of their price, so if you’re looking to buy, make sure you’ve done your research well.
You may be receiving a lot of feedback on quite a few of your showings. While feedback is a great tool to refer to once you are listed, there are a few things you must keep in mind. Firstly, a clear indication by buyers and agents that your house is overpriced. Secondly, your home is being criticized by homebuyers – you’ll really need to read between the lines here – because while they may not call it out directly, they will certainly take out several flaws.
However, it is also important to remember not to go flying off the edge if there are just one or two comments, but if you see a pattern or a repetition of those comments, you may need to reconsider a few things.
This means that if you chose an agent who suggested a much higher price for your home compared to other agents, you may have rushed into the decision. Sellers should know that listing agents who quote a higher price for the property don’t have the sellers’ best interests at heart, because such a high price doesn’t do the seller any favours. Therefore, when you’re choosing a real estate agent, make sure you meet and interview several before settling on one. If they quote a high price, ask them for a reason and based on their answer, do some research of your own. You will know who’s the right listing agent and who’s not in no time.
You’re a ‘No-Show’ Online
Given the fact that almost 90 per cent of homebuyers today start their property search online, it is crucial that your real estate knows the ins and outs of marketing a property online. For your knowledge, this should be done via numerous property-listing portals and social media exposure. But if you still don’t get enough views, there’s definitely something wrong. Maybe it’s time to change your agent!
While you should certainly be on the lookout for these 5 warning signs to ensure your property is priced correctly, another thing you can opt for are virtual property viewings. Virtual site visits are very much in vogue these days and for all the good reasons.
You can check out other nearby properties and how much they are priced at and why and then compare them to yours. Consult a good real estate agent and discuss these virtual property tours with them, so that they know which direction you’re coming from and keeps your suggestions under consideration when listing your home.