When selling your home, it might be tempting to set a high price in hopes of making a big profit. However, overpricing your house can work against you. Here’s why keeping your price reasonable is the smarter move.
Fewer Interested Buyers
If your house is priced too high, it can turn potential buyers away before they even enter. People often have a budget in mind, and if your home is out of their price range, they won’t bother looking. Even if they can afford it, they might choose a similar home priced more reasonably.
Longer Time on the Market
Overpriced houses tend to sit on the market for longer. The longer your home stays unsold, the more potential buyers might wonder if something is wrong with it. A house on the market for too long can develop a “stale” reputation, making it even harder to sell.
Price Reductions Can Backfire
If your home doesn’t sell, you might need to lower the price. While this might attract new interest, it can also make buyers think they can negotiate even lower. Multiple price reductions can make it look like you’re desperate to sell, leading to offers much lower than what you hoped for.
Missing Out on the Right Buyer
The right price will attract the right buyer. When your home is priced fairly, it’s more likely to attract serious buyers who are ready to make a purchase. These buyers might even be willing to make a competitive offer if they see the value in your home.
Helping the Sale Go Smoothly
A reasonably priced home is more likely to pass a buyer’s mortgage appraisal, which is an important step in the selling process. If your house is priced too high, the appraisal might come in lower, causing the deal to fall through or forcing you to renegotiate at a lower price anyway.
Set the Right Price from the Start
Setting the right price for your home from the start is one of the most important decisions you’ll make when selling. A fair price attracts more buyers, helps your home sell faster, and can lead to a smoother transaction. Work with a real estate agent to understand the market and price your home correctly—you’ll have a better chance of selling quickly and for a fair price.
