The real estate market is improving, which is wonderful news for home sellers. Inclining prices give potential buyers more courage to buy, which generates more buyers and more competition. Unfortunately, many sellers make the mistake of overpricing their property, which is not a good idea under any circumstances. The following is the danger of overpricing your Southern NH home.
List Price and Listing Timeframe
It is a well known fact that list price and the time needed to find a buyer are related. Overpriced listings take more time to sell for a few different reasons. First, the higher in price you go, the fewer the buyers. Secondly, overpricing your property makes lower-priced alternatives seem a better deal. Thus, you will essentially help other homes sell quicker. Finally, potential buyers are more scrutinizing at higher price points. Your home should have obvious justification for the high price or home buyers will not have interest.
Listing Timeframe and Sale Price
Additionally, the longer your property remains on the market, the less you will get for it. Buyers build a negative view of properties that have remained listed for long periods of time. They guess that there must be problems with the property (and not just that the price was the problem).
Another factor is that as a seller, you will probably lower the price as time passes. Even if you drop the price to where you initially should have started, the damage will be done. Buyers submitting bids at this stage will typically give lower offers than they initially might have. In the end, your home will sell for less because you overpriced.
The Danger Of Overpricing Your Southern NH Home
The danger of overpricing your Southern NH home is lost time and money. It is that straightforward. Even if the market is active and bidding wars are common, it is never a good idea to overprice. The first two weeks of a home being listed are the most critical. This generates the most interest, increases demand and yields maximum value. Get help from a local real estate professional who understands the market and effective pricing strategy.