Setting the price of your home is a tricky proposition. We all want to get more money for our homes and get it sold fast. Successfully selling our home in the shortest possible time is a gratifying feeling. We can all move on confidently with our lives knowing we have just hurdled a difficult challenge. Here are some of the risks of pricing your home too high.
Gets ignored by home buyers
An overpriced home won’t get the attention from people looking to buy a home. They’ll know its overpriced by comparing your home with other homes on the market based on size, the number of rooms, features, or location. Why will they take a look at your home when there are other similar kinds of homes that sell for much lower?
Not showing up in search results
Another probable reason why it get’s ignored is that it doesn’t show up in search results. In online listings, people can set the price range of the homes that fit their budget. If starter homes generally sell anywhere between $250,000 to $300,000 and you priced your starter home at $320,000, it won’t show up and they won’t even know it.
Longer time to sell it
You will also have to wait a bit longer than usual to sell your home. The homes that were priced competitively gets sold first and you will have to wait until these homes are off the market. This is really depressing because all your high hopes or expectations were shaken up with the cold hard truth. You will just have to wait for a willing buyer.
If ever you get people interested in your home, they’ll probably have to apply for a home loan to finance their purchase. Their chosen lender will order a home appraisal on your property. It’s a necessary process to check if it’s really worth the risk with regards to the amount of money they’re lending. If your home is overpriced, they will reject the mortgage application or ask the buyer to come up with more money.
One thing that is bound to happen with overpriced homes is suffering a price cut. The seller doesn’t have any other choice because the home isn’t selling. A significant drop in price is the only way to get people’s attention because they can now afford the property.
Not get sold at all
If worse comes to worst, your home doesn’t get sold at all. People will think that there’s something wrong with your home that’s why it isn’t selling. This perception will only scare more people from even considering your property. To save your ego and sanity, you’ll just have to take your property off the market for now.