Overpricing Your Home To Sell

Overpriced Listings Cost You Money

Overpriced listings are the number one reason why 46.5% of houses almost half fail to sell. Start high and lower down little by little until you sell it right at what it’s worth I can see why people want to do that and it does make sense logically however in the real world you’re going to lose money one particular scenario.

I Want My Price & That’s That!

Some people just want a certain amount of money for the house regardless of what you or I or anybody else thinks it’s worth and they’re just going to wait until somebody offers them that amount of money.

I know a guy who actually did this and Solomon’s Island anybody who spent a lot of time down there might know who I’m talking about it was on the market for like 20 years he did finally get his number but this is definitely more of a long-term strategy not going to work for somebody who has to move by a certain date or somebody who has a house to sell first.

Toe Dipper Home Sellers

The next group of people is those that are committed to selling their house it’s more of a dip your toe in the water strategy. Imagine getting into a freezing pool and you let your body get accustomed to the water, you slowly move into the deep end. You’re not one of jump In the deep end person, you just want to move slowly.

Think about it the between dealing with the real estate agents, the haggling over the price, dealing with the repairs, all these people coming to see your house… Then getting everything that you have accumulated over these years moved a short amount of time sometimes feels overwhelming to people and they would rather just ease into it.

Trust Issues Home Seller

The next reason most people overprice their house is probably the most common and that is that they don’t trust the real estate agents valuation maybe that real estate agent doesn’t appreciate all the upgrades and repairs you have done. Maybe they don’t appreciate your neighborhood and your area. Maybe they just don’t sell a lot of houses it’s basically a lack of trust. You don’t trust the real estate agents valuation. You feel you know more about what your home is worth then what they do, so you’re going to be in control and you’re going to be the one who sets the price.

There is actually a psychological phenomenon where people believe that what they own is worth more than what they would pay someone else for the same thing. It’s basically where I think my house is worth more than what I would pay you to buy my house.

Giving Away The Farm Homeseller

I think most people are afraid of underselling their house and just giving away their equity to a buyer, that would be foolish. Of all the scenarios of overpricing your house and how it will play out, this is the only scenario where it will actually work out in your benefit. If you believe your house is worth $400,000 and it’s really worth $450,000 starting high will work in your benefit but in every other scenario, this will actually cost you money.