Looking for the best home-selling tips to sell your property? If you’re wondering whether or not there are any risks associated with pricing your home too high, you’ve come to the right place. After all, determining a reasonable price when selling your home isn’t an easy task. While you may want to get the most out of your transaction, it’s also imperative that you stay aware of the benefits and risks involved. Here are some home-selling tips and the pros and cons of pricing your home too high.
Risks of Pricing Your Home Too High
It Creates Stress
Even if you’re the cleanest individual in your surroundings, keeping your home in top-notch condition at all times won’t be an easy task. So, when you price your home high in hopes of reaping more money, your home has to appear pristine enough to attract more buyers.
From carpets and floors to bathrooms and the kitchen, everything should be in great condition. However, how long can you keep it in the best shape? If you aren’t able to sell your home promptly, it will get harder to maintain its appearance. Eventually, it will lead to elevated stress levels.
Your Mortgage Payments Won’t Stop Anytime Soon
The longer it takes to sell your house, the longer you keep making mortgage payments. Essentially, every month you keep pouring your money into a house you won’t get back. Furthermore, when you price your home high, negotiations won’t always go your way.
Problems With Appraisers
Even if you’re lucky enough to get a good offer from a buyer, you won’t be out of the woods yet. While it doesn’t usually happen, some buyers may do it out of inexperience. However, the problem arises when they seek a bank’s help for a mortgage.
Since banks need to have homes appraised, it may pose another challenge for you. The appraiser will determine the prices of nearby homes and compare them to your property’s value. This can further delay the process because you’ve priced your home too high.
Your Property Can Become Stale
Overpricing a home means you always run the risk of it not getting sold. The longer it stays on the market, the higher the risk of it getting stale. The interest in your property immensely declines. When your home isn’t sold in time, it raises suspicion among buyers.
Hence, when they move on from a listing, it is usually a permanent decision. Dropping the price later on will also backfire because the same buyers are not likely to return.
Pricing Your Home Right
It isn’t wise to price your home based on the house’s construction cost, your mortgage cost, or the money you need to buy a new house. Instead, you want to stick to fair pricing tactics by basing your property’s value on recent comparable sales in your area.
While overpricing a home has its downsides, underpricing isn’t a way out either. You’re essentially settling for a much lower price than what your property is worth due to a fear of not selling quickly. Nonetheless, the former practice is much riskier than the latter and can make your property go stale if not sold within the first few months.
Benefits of Pricing Your Home Right
You Can Sell Faster
The more justified the price of your home, the better the chances of attracting buyers. Your property is also more likely to receive multiple offers.
You Can Gain Buyers’ Confidence
Going too high or too low with your home prices can keep a potential buyer wondering whether there’s something wrong with your property. Sticking to a fair price shows them that you and your real estate agent from Robert DeFalco Realty have done the homework for pricing.
Hence, you want to ensure that you’re pricing your home right, right from the start.
Boost Your Home’s Curb Appeal
This has to be one of the most effective home-selling tips. First impressions are indeed the last impressions when it comes to buying and selling houses. A lackluster appearance can put many buyers off within seconds.
This is where the condition of your exterior plays a crucial role. Incorporating the right colors, spray painting your grass, and getting your doors painted fresh can do wonders to lift your home’s appeal.
Determine Who Your Potential Buyers Are
A good real estate agent can help you figure out your target audience. This way, you can stage your property for the right audience. For instance, if your house is in a suburban area, it will likely appeal to a younger family.
Set the Right List Price
The price you set will have a significant impact on how fast or slow your house sells. Underprice it, and you’ll suffer losses. Overprice it, and your home will be sitting on the market for a long time. Set it right, and you’ll be in a great position to sell your house faster for good value. The key is to settle for something less than what your real estate agent thinks will be reasonable. This way, you’ll have more potential buyers interested in your property. For one, it’s because most of them know what houses like yours have been selling for.
Don’t Go Overboard with Improvements
While enhancing your home’s curb appeal is important, overdoing it can do more harm than good. It isn’t wise to spend your valuable bucks on doing major and unnecessary transformations.
Instead, focus on making smaller improvements. For instance, instead of transforming the entire kitchen, get the cabinets repainted.
How Robert DeFalco Realty Can Help
With over 350 trained professionals on board, Robert Defalco Realty can help you sell your home faster and at an amazing price. Our professional approach to pricing homes helps our clients determine the true value of their property in the market. Our team of experts ensures using the most accurate data, so you have faith in our home value opinions.