Selling a house is a significant milestone for any homeowner. But, as the real estate market evolves, one common mistake persists: overpricing. It may be tempting to list your house at a higher price in hopes of securing a bigger profit. However, overpricing the house can lead to the opposite result, ultimately costing you time, money, and stress.
Here’s why overpricing is sellers’ number one mistake—and what you can do to avoid it.
1. Fewer Showings and Less Interest
Pricing a house above its market value discourages potential buyers from viewing it. Buyers are smart and usually have access to info that shows what houses in your area are worth. They’re likely to skip overpriced listings entirely, focusing instead on homes that offer better value.
Also, agents prioritize showing priced houses because they know those are more likely to sell. This means fewer showings for overpriced properties, which could extend the time your house sits on the market.
2. Extended Time on the Market
The longer a house sits unsold, the more “stale” it becomes in the eyes of potential buyers. People often wonder why a house has been on the market for so long and may assume something is wrong with it. Dropping the price can hurt the house’s image, leading to lower offers or ongoing lack of interest.
3. The Risk of Low Appraisals
Even if you find a buyer who offers more than the market value, the sale can fall through if the house doesn’t appraise for that price. Lenders will only finance what the house is truly worth, based on an appraisal. If the house doesn’t appraise, you might have to lower the price, negotiate with the buyer, or worse—lose the sale altogether.
If a house appraisal comes back higher than the offered price, that’s great news for the buyer! It means the house is worth more than what they’re paying, and they can move forward with the purchase without any issues. Essentially, they’re getting a good deal, and there’s no need to worry about renegotiations or loan problems.
4. Overpricing Can Help Your Competition
When you price your house too high, you can actually help sell your competition’s homes faster. Buyers comparing homes in the same area may see a fairly priced home as a “good deal” compared to an overpriced one.
Instead of standing out, your overpriced house pushes buyers toward other properties that offer more value for the price.
5. The Impact on Your Bottom Line
Ironically, overpricing can lead to you receiving less money in the end. When a house is overpriced, price reductions are often inevitable. By the time you lower the price, buyers might offer even less because they think there’s room to negotiate.
The longer your house stays on the market, the more you’ll pay in taxes, insurance, and utilities. In some cases, you may lose more money than if you had priced the house right from the start.
The Solution: Trust the Market and Our Agents
Setting the right price from the beginning is key to a successful sale. Our real estate agents can give you a comparative market analysis (CMA. That will help you understand your house’s true value compared to similar properties nearby. They’ll factor in location, condition, amenities, and current market conditions to determine the best list price.
It’s normal to want the highest price for your house, but the best approach is to price it fairly and let demand boost the sale. Pricing a house correctly attracts more buyers, often leading to better offers and sometimes bidding wars.
In Conclusion
Overpricing is the most common mistake sellers make, and it can be costly. By pricing your house right and trusting your agent, you can avoid overpricing, ttract serious buyers, and get the best result for your sale.
At The Legacy Group Real Estate, our real estate professionals help sellers price their houses correctly for a smooth and profitable sale. Remember, the goal is to sell quickly and at a price that reflects your house’s true value—not just a wishful number. Let us guide you through the process and avoid the costly mistake of overpricing.
For more information, check out our seller’s guide:
https://thelegacygrouprealestate.com/sellers/deciding-to-sell/