Most people tend to believe their home is special. "It's got a great backyard", "special red bricks", and "it's never been smoked in". These are the kinds of things Canadian Realtors often hear when we walk into a listing appointment. Although the smoke-free environment might be a nice touch, it likely won't add $100,000 to the home's value. Here are some of the reasons you shouldn't overprice a property, I've also included a few other pointers!
Drawbacks Of Overpricing
More Time on Market
Overpriced listings tend to sit on the market for a longer period; buyers may hesitate to make an offer out of fear that something is wrong with the house
Helps The Competition
The higher price makes the competitor’s property look like a great deal
Lower Net Proceeds
Overpriced properties can eventually end up selling for less than market value. Additional time spent on the market also means more carrying costs
Realtors may avoid showing the property to their clients if they feel it’s overpriced
Benefits of Properly Pricing Your Home
You can save on mortgage payments, real estate taxes, insurance, and other carrying costs
It takes a lot of time and energy to keep the property clean and to prepare for showings. Proper pricing shortens market time
Exposure to More and Better Prospects
The right price will likely draw more serious buyers as opposed to bargain hunters and low ballers
Better Response From Advertising
Buyer inquiry calls are more readily converted into showing appointments when the price is not a deterrent
Preparation For The Sale
Most buyers are turned off by uncleanliness or odors in a home. Pay special attention to the odors produced by dogs, cats, or cigarettes.
Remove extra furniture, rugs, consoles, plants etc. to make your house appear larger and more spacious
Preparation For Showings
The marketing: professional photography, brochures, just listed post cards, online advertising etc, along with negotiation skills are not to be undermined. However, pricing is one of the most important factors with regards to the sale of your home. Next time you think of selling, be sure to get a full market analysis report. The importance of a knowledgeable Realtor is significant, choose the right agent, not the one who will charge you the least!