From the way the tulips bloom in spring to the snazzy new wet bar in the basement, you’re well aware of all the reasons why your home is worth every penny you’re asking for it. Unfortunately, the market may feel differently.
No matter how many unique characteristics contribute to the value of your home in your estimation, ultimately, local market statistics, such as comparable market values, still play the largest role in determining the optimal listing price for your home. Here’s why putting your home on the market above that price can be detrimental:
- You might miss the “new listing” allure. Sometimes, the best chance of selling your home is within the first 30 days when it hits the market as a new listing. But, if it’s priced too high for the area, buyers will overlook it and wait for a price drop.
- You’ll help the competition. Your home may attract buyers to your neighborhood, but if it’s priced higher than others in your area, they’ll take the better deal!
- You won’t show up in searches. When buyers are searching online—which most do before ever showing up in person—they set search parameters based on price range. If your home is priced too high for your neighborhood, you’ll be skipped over from the get-go.
- Your home will lose interest. If your home is priced too high, it will linger on the market, which becomes a red flag for buyers. The longer it sits on the market, the more people assume there is something wrong with it.
- You’re working with the wrong agent. If the real estate agent you’re working with agrees to list the property at an unrealistic price, that’s a red flag. An experienced local expert will strongly advise against listing too high (for all of the above reasons) and probably won’t take the listing if you insist.
When it comes to choosing the right listing price for your home, make sure you’re working with an experienced real estate professional, then follow their guidance when it comes to price.