What are the pitfalls of overpricing your home?
When you make the decision to sell your home, one of the most important factors to consider is the list price. As real estate agents, our goal is to get you the most money that the market will bear.
When you consider what that list price will be, you want to examine a few factors. What are the recent sales and market history of your neighborhood, dating back at least six months? At what price point will your home show the greatest value to the largest amount of buyers?
When considering list price, there are two major factors.
If buyers can't see the value in your home through things like the marketing, it's going to result in limited showings and traffic through your home and potentially no offers. Examining these two factors can ensure that you have a competitive pricing strategy.
Statistically, we find that sellers receive the highest and best prices on their home in the first 30 days of the listing. That's important because those people shopping in your area will likely see it within the first 24 to 48 hours after it goes live. At that point, they will make a decision about whether they see value at the price you're asking and whether they want to schedule a showing.
You must pull a buyer from the pool of the first surge of buyers that come through your home in the first 10 days of the listing because that is your market. If you haven't received any offers once that surge is gone, you'll need to go back and examine whether your marketing is working, the condition of the home, and your price. The longer a property sits on the market (more than 30, 60, or even 90 days), the lesser the sense of urgency or competition on it.
When buyers see a home and like it in the first weekend, then somebody else will as well, so they need to make a strong offer to ensure they can lock up that prized property that they really want. That's the competition and urgency you lose when the property sits on the market; offers that do come in will be lower.
Which indicators can let you know you're on the right track? Well, once your listing goes live, if your home is in great condition, in a great location, and your marketing is working, you can point to price if you don't have any showings in the first 10 days. If you've had 10 showings and no offers, you also need to examine price. The market will tell you exactly what you need to do every three to four weeks.
I hope this topic was insightful for you. If you have any questions about pricing your home properly or you have questions about the Pennsylvania real estate market, give us a call or send us an email. We're here to help.
