The Danger of Overpricing Your Home


    How do you know how much to ask for when you sell your home? Today I’ll discuss.

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    Knowing what price to put on your home is one of the most difficult things about selling your home. There’s often a sense of anxiety around trying to get the maximum value for your sale, and pricing it correctly is really important in doing that.

    If you live in an area where many of the homes are similar or the same, and many of those homes have sold in the past six months or so, then pricing your home is a lot easier. If you don’t live in a ‘cookie-cutter’ neighborhood, however, it’ll take a lot more time and effort to research substitute homes that are similar to yours but aren’t in your area.

    On this front, the greatest piece of advice I can give is to avoid overpricing your home, regardless of your circumstances. The market will correct you if you underprice your home and it will punish you if you overprice your home.

     

    The market will correct you if you underprice your home
    and it will punish you if you overprice your home.

     

    Here’s an example of how overpricing your home can really hurt you:

    A couple of years ago, I listed a home on the market at $225,000. That same weekend, two other homes that were pretty much identical to the one I purchased came onto the market—one for $225,000 and the other for $245,000. My listing sold for $237,000; the other one that was originally priced the same sold in one weekend for $235,000. The third and highest-priced home wound up sitting on the market for 90 days and didn’t end up selling until they’d reduced the price to $220,000. That’s a $15,000 loss.

    If you have any questions about pricing your home, feel free to give me a call. I’d be glad to talk to you some more.

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