10 Ways to Know Your Home is Overpriced and Likely Will Not Sell | Listing Naples Group | Blog | Naples Real Estate

10 Ways to Know Your Home is Overpriced and Likely Will Not Sell

One of the biggest mistakes a seller can make is pricing their home too high from the beginning. We spend a lot of time pouring over comparable properties that recently sold in order to come up with a rock-solid estimate of value for a customer’s home. When we list at the price we came up with, we routinely find our sellers a buyer in far faster time than the market average.

Real Estate Advice / Chris

10 Ways to Know Your Home is Overpriced and Likely Will Not Sell

One of the biggest mistakes a seller can make is pricing their home too high from the beginning. We spend a lot of time pouring over comparable properties that recently sold in order to come up with a rock-solid estimate of value for a customer’s home. When we list at the price we came up with, we routinely find our sellers a buyer in far faster time than the market average.

Sellers do not always take our advice though! Too many will say, “Let’s list high and we can always come down.” While you can come down, listing too high is a problem. Even if a buyer comes along to purchase your home at an inflated price, the house will likely not appraise so the seller will have to lower the price of the home anyhow.

So how do you know if your home is overpriced? Here are 10 ways to find out.

Your home is priced higher than comparable properties in the neighborhood.

A sure sign that your home is priced too high is by looking at what the neighbor’s homes are listed at. In a neighborhood with similar homes, why would someone pick an overpriced home to bid on? Odds are, they won’t.

You do not get the number of showings you should.

Is your home quietly sitting on the MLS without buyers coming to look? If you’re not even getting showings, your price is far too high.

You’ve had a number of showings but no offers on your home.

This is a really frustrating situation for a seller to be in. The seller has to get the home clean and ready for a showing only for it to be a waste of time and energy. If buyers are looking at your home yet choosing a different one, price is more likely to be the reason than a factor of the home. The fact is, we would have already told you about a negative characteristic of the home when we listed it.

You’re watching the neighbors’ homes sell ahead of your own.

Have you been on the market a while and while your home sits without an offer, the neighbor’s homes are selling? While this could be due to the neighbors having better agents, it is more likely to be your price.

Nobody shows up to your open houses.

Open houses, even during a pandemic like COVID-19, will have a number of visitors. When we list your open house on the MLS, it propagates out to a number of sites and buyers will take note. If your open house isn’t generating traffic, the buyers are simply not interested in seeing an overpriced home.

Offers are coming in and they are low, low, low.

This will happen quite a bit with overpriced homes. The sellers will say to their agent, “These people are just low-balling me.” Nope. They’re making reasonable offers based on market conditions and comparable properties. They just seem like low offers because the price of the home is so high.

Your home is does not sell and your listing agreement expires.

I really hate to see a home expire because it crushes the seller’s goal of moving. Yet, a home expiring is almost always a sign that the home was priced too high for the market.

The feedback agents provide tells you that your home is priced too high.

Here’s a little behind-the-scenes for you. When we, as agents, take buyers to a home, we get an email asking us to leave feedback. This feedback is then shared with the seller of the home. One of the first questions asked is what our buyers thought of the price. If your feedback tells you that the price of the home is too high, and you see this feedback after each showing, you guessed it—the price is too high!

You interviewed agents and hired the one that recommended the highest price.

As a Realtor®, this truly drives me crazy. We spend so much time coming up with a price to list a home and another agent disingenuously tells the seller to list higher. Then, the seller goes under contract with this awful agent and is stuck for the term of the listing. Why would an agent do this? Simple—it guarantees they will get the listing even though it is a fraudulent practice. If you interview a number of agents and most are telling you a reasonable number and someone comes in and tells you a price that is much higher, that should be the first agent you scratch off of your list!

The traffic on Internet sites is very low.

We are able to see the number of views on a home compared to the competition on sites like Zillow.com. These sites will also tell us how many people “liked” or “favorited” a home. If your listing isn’t getting those likes and favorites, you’re likely priced too high!

What should you do with an overpriced listing?

Obviously, lower the price! That’s not enough though. You need an agent that will lower the price and then pick up the phone and call every agent that has showed the property to let them know about the new, realistic price of the home.

My wife and I will personally call every agent and even do an email blast to about 6,000 local agents to inform them of the new listing price. It is a lot of work but often results in a quick sale once the home is priced as it should be.

Thinking of selling your home?

We’d love to talk to you. There’s no obligation to use us of course but feel free to send us a message, text, call, or email and let’s discuss the value of your home.


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