Have you ever walked out of a home on the market and wondered what in the world the seller was thinking when they priced the home? Sometimes, sellers aren’t aware that their home is grossly overpriced. These are the reasons why so many sellers make the mistake of overpricing their homes:
It’s hard to look at your home from the perspective of a buyer. Sellers may think that the unique touches that they’ve added throughout the home are worth thousands, when really they’re more of a turn off for potential buyers who don’t have the same taste in decorating. Buyers may think that these add-ons actually devalue the home, since they will require renovations to fix, while sellers think they are priceless.
Return on investment.
If sellers paid too much for their home in the first place, they may be set on making a profit when they sell the home, even if that means overpricing it. The same can be said for sellers who bought the home at a reasonable price, but then sunk a lot of money into it for renovations. If sellers can’t get past the idea of breaking even or perhaps losing a bit of money because of a bad deal that they made, then they will probably not budge from their ridiculous asking price.
When sellers have lived in a home for decades, it can be hard to part with both the home and the memories that it contains. Sellers may have watched their children grow up and move out in this home, and in their eyes, these memories are worth thousands. Or, the seller could have designed and built the home himself. In both of these situations, there will be a strong emotional attachment between the seller and the home. If they can’t tell the difference between the value that they place on the home and the value that other buyers see in it, then they will most likely overprice it and not attract any serious buyers.
Leaving room for negotiation.
Some sellers decide to price their homes higher than what they are worth because they expect buyers to try to haggle. By pricing it much higher, they figure they will have more wiggle room to negotiate a good deal. It sounds like a great idea, but does it work? Most of the time, no. In order to get a buyer through the door, you have to have an attractive price. If your home is overpriced, it will be hard for you to attract buyers to even take a look at what you have, much less get them to write an offer and submit it. It’s ok to start a little bit higher than what you want to get out of your home, but don’t go too crazy and significantly jack up the price.
Want more real estate advice? Talk to the professionals! Contact our team of real estate experts at Coast 2 Coast Realty who have years of experience helping buyers and sellers in the Tampa area.