Yes, It Is Possible To Overprice Your Home, Even In The Current Crazy Market


Yes, It Is Possible To Overprice Your Home, Even In The Current Crazy Market
By Scott Rogers • September 28, 2021
Home prices are increasing quickly these days -- we've seen a 13% increase in the median sales price over the past 12 months! As such, it might seem nearly impossible to overprice your home when you are listing it for sale. But it's possible. :-) Let's say homes in your neighborhood were selling for $400K a year ago and are now selling for $440K. That sounds about in line with that 13% increase described above. Even though market data points to a value of $440K for your home, you decide to list it for sale for $475K. Why not, right? Buyers will pay nearly any price in the current market! Here's what is likely to happen... [1] You will still have showings. [2] Some (or even many) of the buyers who view your home will want to buy your house, but not for $475K, and they will hesitate to make an offer because they figure there is probably some buyer who will pay $475K because the market is so crazy. [3] You won't have any offers on the house. [4] You'll wait 2 or 3 or 4 weeks and then reduce the price to $460K. [5] You will won't have offers. [6] You'll wait another 2 or 3 or 4 weeks and then reduce the price to $449K. [7] You'll get an offer of $440K and settle on a price of $445K. The offer will include an inspection contingency and an appraisal contingency. Now -- wouldn't it have been easier to go this route instead? [1] Price your home at $445k or $449K. [2] Have lots of showings and multiple offers. [3] Sell your home for $445K or $449K without an inspection contingency or appraisal contingency. Even in a strong seller's market, it is important to price your home reasonably within the context of past sales data and competing listings. Overpricing your home is likely to slow down your home sale, possibly lower the price for which you'll sell, and possibly result in an offer with more contingencies than you would have had if you had priced your home reasonably from the beginning. Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).
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