Setting a fair price for your home is one of the most important steps for getting it sold without any unexpected setbacks. People who price their home too high usually encounter several problems. The entire sales process gets bogged down and you may end up contenting with a competitive home market or a picky buyer
Take Emotion Out of the Equation
Since you have likely lived in your home for many years, you have developed a unique appreciation for the property. To you, the home could be veritably priceless.
However, when entering the real estate market you should ignore any “intangible” qualities when setting your home’s price. These aspects will not be understood by the buyer. They may think that you are inflating the price purposefully to gouge them.
To avoid this suspicion, always find a reliable agent with knowledge of the current market to help you set your price.
Lingering on the Market
The biggest problem with pricing your home high is that it will get less inquiries and bids. Home buyers have become accustomed to skimming through online listings with price filters. If your home price falls above their search parameters, then you will likely miss out on countless opportunities.
Even if you are able to generate interest, a home buyer will judge the home more harshly when viewing because of the premium price. They may be more critical of any flaws they see. They may also simply decide that while they like your home, the price is simply too high to even be bothered.
The result of these reactions is a home that sits on the market for longer. Your listing will be passed over for more affordable or competitively-priced homes that get people’s attention.
Eventually, the market may become wary of your home since it has been listed for so long. Agents and buyers may begin to suspect that there is something wrong with the Red Deer real estate property, rather than a mere lack of motivated buyers.
A Costly Mistake
Another problem that can occur from a high home price is that the house can actually sell for far below market value. A listing that has been prolonged will usually prompt a series of price reductions. Even if this is not your intention, buyers may assume that you will cave and reduce the price because it is a common practice.
You may also incur buyers that are apt to haggle aggressively. These types can see a high price as a challenge, and use it as a leveraging point for all sorts of contingencies like you covering closing costs or performing renovation requests.
As you can plainly see, pricing your home too high could cost you more time and money in the end. To find a qualified agent that can help you price your home in a way that makes the whole process easier, take a look at our buying page.