If Inventory is Low, Can I Overprice My House?
If you’ve been seriously considering selling your home, you may have noticed how quickly the housing market has been drying up. House after house has sold at lightning speed with buyers eager to move to all kinds of different locations. Home value has skyrocketed across many places in the United States over the past couple of years, and the trend doesn’t seem to be halting any time soon. That said, is it possible to price your house too high? Will a house sell in a neighborhood with no inventory, even if the price is very high? Let’s discuss.
At the end of the day, no matter what your real estate agent, friend, or anyone else says, the buyer is the customer you are trying to appease with a compelling offer. While having a higher listing price isn’t in and of itself a bad thing, the buyer needs to feel that the higher price is worth it.
Let me use an analogy: When Apple releases a new iPhone every year, they put forth a selling price for each phone that’s listed. However, the goal isn’t simply to list a price for a product; it’s to give the customer the impression that what they’re buying has real, intrinsic value. Even if the price of the new iPhone is higher than alternative options, the customer’s belief that the higher price is worth it because of the premium value makes the deal a true success. That said, pricing a phone too high – particularly during tough economic times – will not do Apple any favors if it turns off a good portion of their consumer base.
The same can be said of buying a home. If the buyer believes the home is worth the extra money that goes into it, they will be willing to buy. If not, then the seller is at risk of not reaching a deal. In fact, some buyers may likely not even make an offer to avoid the risk of offending you, the seller, with a low number. As a result, your home may end up staying listed for too long and look even less appealing to other potential buyers.
If you’re unsure what to list your home for, take care to thoroughly interview a list of potential real estate agents to make sure they’re going to get the best deal for you. Do your own homework on what homes in your area or nearby typically sell for and how long they stayed on the market before being sold. OR Let us do the heavy lifting for you and tell you what we think your home could sell for today!
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