How much asking price is too much?
Everyone knows sellers want to get as much as they can for their home sale. One goal when you’re selling your house is to get as much money as possible. But, how much is too much? Is the hope for a “homerun” worth pricing the home out of the market?
Technically, yes. But that does not mean taking a risk by setting your home’s price above what the true market value is a suggested strategy. Ultimately, there are many reasons not to test the market with overly ambitious pricing strategies.
1. At the very least, you will lose credibility
Buyers are becoming increasingly more savvy. They know what they want and their agents know the local market. The Internet often gives buyers an edge if they do the necessary research to support an accurate value of what the homes in your neighborhood are worth.
2. Not everyone likes to negotiate in the midst of vast differences
A common reason sellers price high is that they hope to negotiate. But, there may be an obvious problem with this tactic? If the home is priced too high, buyers may overlook your house because it is over their budget. If that happens, there is one unfortunate but simple outcome: too high a price equals no negotiation and no buyer.
3. The seller loses the initial listing momentum
Most real estate professionals feel that sellers are in control during the first month a house is on the market. Since the listing is still new, buyers will be stopping by in droves to check out the newest properties for sale. But, if you price the home too high, the anticipated plethora of offers will no doubt never materialize. Then what? Savvy buyers and their agents will keep an eye on the property and pounce when the asking price starts to fall. Your aggressiveness becomes their opportunity. Avoid the issue entirely by pricing right.
4. The worst case scenario
If your house is on the market longer than the first month and you have made highly visible efforts to advertise the property, buyers will take notice and start to wonder if there is something wrong the home. Ultimately, the real problem for the seller then takes place. A price drop, means you get less for the home than if you had listed it at a realistic price from the start.