One of the biggest challenges we face as agents is when we sit at a seller’s kitchen table and discuss the price we are going to list their home for. Most of the time, there is a gap between the price the sellers want to list at and what the market is telling us the home is worth. That’s fine and all part of the process. However, if we do list at too high of a price, the home will linger on the market and any offers that may come in will be far lower than the asking price.
So, how do we know if a home is priced too high?
- Limited Interest and Showings
One of the first signs that your home may be priced too high is a lack of interest from potential buyers. If you’re receiving minimal inquiries or few showings, it’s a clear indicator that the price tag may be deterring potential buyers. - Comparable Properties Sell Faster
When homes in your neighborhood with similar features and attributes are selling quickly, it could be a sign that your home is overpriced. Buyers often compare properties and are likely to opt for a better-priced alternative with similar qualities. - No Offers or Lowball Offers
If you’re not receiving any offers on your home or the offers you receive are significantly lower than your asking price, it suggests that buyers perceive your home to be overpriced. Take note of the market feedback and consider adjusting the price accordingly. - Online Views but No In-Person Visits
If your online listing receives a high number of views but fails to translate into actual in-person visits, it indicates that buyers are intrigued by your home’s online presentation but are deterred by the price when they dig deeper. - Fewer Agent Inquiries
Real estate agents are experienced professionals who have a pulse on the local market. If you’re not getting inquiries from agents or they’re not actively showing your property to their clients, it might be an indication that your home is priced beyond the realistic market range. - Expired Listings
If your home was previously listed but didn’t sell within the expected timeframe, it’s worth evaluating whether the pricing was a contributing factor. Expired listings often signal that the price was too high for the market conditions. - Lack of Appraisal Support
When a buyer needs a mortgage to purchase your home, the lender will require an appraisal. If the appraised value falls short of your asking price, it can complicate the financing process and result in the deal falling through. Lack of appraisal support can be a sign of an inflated price. - Feedback from Potential Buyers
Pay close attention to the feedback you receive from potential buyers and their agents. If recurring comments suggest that your home is overpriced compared to similar properties, it’s essential to consider making adjustments to attract more interest. - Longer Time on the Market
An extended time on the market can be a consequence of pricing your home too high. The longer your home stays listed, the less attractive it becomes to buyers, leading to fewer inquiries and potentially lower offers. - Competing Listings with Lower Prices
If other homes in your area, with similar features, are listed at lower prices, it can be a strong indicator that your home is overpriced. Buyers will naturally gravitate toward the more competitively priced options.
Pricing your home appropriately is key to a successful sale. By recognizing the signs that your home may be priced too high, such as limited interest, lack of offers, or a longer time on the market, you can take proactive steps to adjust the price and attract potential buyers. Working with a knowledgeable real estate agent and staying informed about market trends will greatly assist you in determining the right price for your home, maximizing its appeal, and ultimately achieving a successful sale.
