It can be an incredible challenge to price your home correctly before putting it on the market. In the modern-day, there’s no fool-proof formula for finding the ideal price for which your house should be sold, which makes this process all the more difficult.
There are multiple disadvantages of overpricing your house when trying to sell, even if you reduce the price. Such is the reason why it’s essential to do enough research when trying to determine the worth of your home before putting it on the market for selling purposes. The extra work that you’ll be doing will be worth it.
The Ways How Overpricing Can Hurt Your Sale
According to a reliable company for home inspections in Sherwood Park, there are various reasons why you, as a seller, should not overprice your home just because you want to find out whether there are any takers at a higher cost. You must remember that in this day & age, most buyers are very much informed about house prices. Buyers perform their research and they very well know how much a house like yours should cost.
If your house has been priced higher than the market price, then they do not even take their useful time in looking at your property. They’ll simply ignore it. As a result, it’ll be easier for your competitors because buyers will purchase homes from other sellers which are properly priced.
One of the biggest reasons why you’d not want to overprice your home is because the first 30 days that your property will be on the market for sale will turn out to be extremely crucial. Once that period ends, the listing will no longer be considered new and the attention of buyers will easily move onto other new properties which are newer on the market.
Hence, if your house is priced higher during that golden 30 days period, then it can become difficult to sell the same at a reduced price. It’s recommended that if no one has made an offer after 30 days since the house has been on the market, then it’s time to simply lower the price.
How Can You Know The Correct Asking Price For Your House Sale?
If you want to get the sale price right the first time onwards, then you should research extensively for the same. It’s suggested that you take a look at the previous sale figures of similar homes located in your area. Moreover, properties that are still on the market and are unsold will help you to understand how you shouldn’t price your house because the price can be a reason why those properties haven’t sold yet.
Besides, as a seller, you also need to put yourself in the minds of the buyer and then think about the price that a buyer would want to pay. Sellers should consider the weaknesses & strengths of their properties and thereby price their home.
You must also know that demand & supply affect the pricing of your house as well. If you’re in a seller’s market (more buyers, fewer sellers) where the demand for homes is higher than the supply, then you can easily charge a premium on the sale of your home. However, if you’re in a buyer’s market (fewer buyers, more sellers) where the demand for homes is less than the supply, then you have to lower your price to match your competitors.
Lastly, don’t ever forget that your starting price will be the origin for negotiations, so take that into account when pricing your home.
And that brings us to the end of our guide. We hope you enjoyed our recommendations and in case you have any further questions, don’t hesitate to ask us.