The Perils of Overpricing Your Charlotte Home for Sale
In the past, I was inclined to accept listings from sellers who I knew were unrealistic in their expectations as far as pricing was concerned. I always felt that I could show them that after 30 days, with no Offer, they could reduce the price and VOILA! the home would sell!
Sellers have an inherent ‘attachment’ to their home–they want to move but, won’t consider reducing the price to the point at which it will actually SELL. “My home is worth $___ and I have done $___ amount of work to the home so, I’m not just going to give it away!”
I have found this to be a common trend in sellers who tend to overvalue property that they own. That disconnect created between sellers and their potential buyers can ultimately cost sellers a good deal of cash. Here’s how:
- Buyers searching for properties in a particular square foot range AND price range will not find an over-priced home. If you, as a seller, price your property above the competition, your listing will not be seen by buyers looking online and remember that over 90% of buyers actually FIND their next home ONLINE!
- Buyers who do actually find your home online, will be comparing your home to other homes in that same price range. If your property is overpriced, the buyers will be comparing yours to homes (price the same as yours) with more square footage. As the old saying goes, buyers want ‘more bang for their buck’ – in this instance, more square footage for the dollar. If you’re the overpriced property, chance are, buyers won’t even look at your home and if they do, it won’t ‘win’ the buyers’ Offer. If it does, by chance, win the buyers’ Offer, statistics show, it will be a low-ball Offer.
- If you’ve heard the stories about low-ball Offers, here is the criteria for inviting them
- A home listed on the market for longer than average days on the market for that particular community.
- A property that has not had one price reduction in over 30 days--or worse, during the life of the listing.
- An overpriced home that the buyer and their agent have performed extensive comparable sales research and found that the property is seriously over-priced.
Buyers also have a safety net with overpriced homes–the appraisal! Should your overpriced home receive an Offer, the buyer’s lender WILL order the required appraisal in order to have mortgage approval. Should that appraisal fall short, a whole new can of worms is opened up! Most importantly, no lender will loan your buyer money if the home does not appraise at or above the Contract price.
To make matters worse for sellers who overprice their home, with no Offers for months, even with multiple real estate agents representing them, a languishing home looses value in the market significantly. Many languishing homes wind up selling for less than area foreclosures.
Charlotte home sellers AND home buyers rely heavily on their agents’ ability to put together a comparative market analysis (CMA). These CMAs reflect the likely price that a buyer will pay for a particular property. Redefine the market value of your home - pay close attention to the expert advice that you receive from your Charlotte real estate agent.
If you do insist in listing your Charlotte home for sale at a price that is above market value (overpricing your home), pay careful attention to the feedback that you receive from your perspective buyers. As well, you simply MUST agree to a price reduction within WEEKS, not months of listing your home. A ‘stale’ property (one that has been on the market for months) with a now, great price, is as dangerous for sellers as a new listing that is overpriced. Not to mention, the languishing home on the market is reduced in value so severely that had you priced it right from the beginning, you could have found yourself with multiple Offers!
Don’t take that chance–price your home according to the MARKET VALUE; do NOT price your home with your heart! Don’t be stubborn! Listen to the expert when it comes to pricing your Charlotte home for sale – if you don’t trust your agent, have an objective appraisal done on your home! It could very well be the best $400 you’ve ever spent!
More Charlotte home seller information:
- Two Key Ingredients to Selling Your Charlotte Luxury Home
- Charlotte Area Luxury Home – Staged, Stunning and SOLD!
- 10 Most Common Charlotte Home Seller Mistakes
- Things You MUST Disclose When Selling Your Charlotte Home
- Charlotte Home Seller Tips – Preparing for the Inspection
- Six Staging Tips to Get Your Charlotte Home Sold Quicker
- Charlotte Home Sellers – You Should NOT Have to Pay for Marketing Your Home UP FRONT!
- Safety Tips for Charlotte Home Sellers
- Charlotte Home Seller Tips – Marketing Mistakes to Avoid
- Charlotte Home Seller Tips – Five Updates to Get Your Charlotte Home SOLD!
- Charlotte NC Home Seller Tips | Spectacular vs. Blah – Guess Which SELLS?!
- Pricing Your Home for Sale, Myth vs. Reality
- Selling Your Charlotte Home – Leave the Emotions Out of the Equation
- Pricing is CRITICAL When Selling Your Charlotte Real Estate
- Charlotte Home Seller Tips – Redefine Your Market Value
- Charlotte Home Seller Tips – Do Your Research
- Charlotte Home Seller Tips – Remodeling Tips | Ways to Save You Money
- Charlotte Home Seller Tips | Extend Your Selling Season
©Debe Maxwell | Savvy + Company Real Estate | Charlotte Home Seller Tips | The Perils of Overpricing Your Charlotte Home for Sale