Top 5 signs your house is overpriced
If you're selling your home, you need to understand that the right pricing is imperative.
The most common reason a house doesn’t have a buyer is because the list price is above market value.
When selling your home, it is imperative that you set a realistic price. If you make the mistake of setting an exorbitant price, it is important that you identify this error and change it as quickly as possible.
How does a seller know if their house is too expensive? Here are the top 5 signs that your home is overpriced.
1. our home is priced far higher more than your neighbours
In general, in most neighbourhoods, home values will be relatively consistent.
If your home is listed at way more than your neighbours, and they are receiving showings or offers and you are not – you need to get your price more in line with the home down the street.
If your home is a much higher price than your neighbours, it's entirely possible that your realtor didn’t do thorough research on your house price. Or, the agent did and you chose a higher list price than recommended.
If either of these things happened, you will want to adjust your list price accordingly.
2. You have had few or no showings
Basking in the initial euphoria is a popular emotion that’s very common to sellers. Sellers are satisfied with their home being listed for sale and advertised all over the Internet. Weeks pass, and there are a few or no showings of your house. No second showings. No offers.
Now that excitement turns to fear and frustration. If this sounds familiar, the chances are that your home is too pricey. If your home has been listed for sale for a few weeks and you only had a few showings, you need to adjust the price in hopes of generating some activity.
3. You've haven't received any offers
In most Okanagan real estate markets, if a house is priced at market value, a homeowner should get at least one offer within a month. If you have not received an offer for a few months, you need to make the necessary price adjustment.
Certainly, there are types of properties that typically may take a very long time before they receive an offer, but it's pretty rare. This is usually a luxury home or a specialty property such as Okanagan Waterfront.
4. You hired an agent who “bought” your listing
In the Okanagan real estate market, there are hundreds of realtors. When interviewing potential realtors to sell your home, it is important that you know the kind of questions to ask during the interview.
One of the key questions should relate to the pricing of your home. It is essential that you understand how this realtor came up with the suggested listing price of your home.
If you are interviewing numerous Okanagan real estate agents and one of them suggests a price tag that is way more than the others, you need to know concrete facts of how they arrived at that figure.
There are many agents who will “buy a listing” by recommending a price that is higher than the market value. If you made the mistake of being wooed by this tactic and hired an agent who suggested a very high listing price, it’s possible that your house is more expensive than the market expectation.
5. Your neighbours’ homes are selling faster than expected, and yours Is not
One of the most depressing things for a seller is when neighbours' homes are selling, and yours hasn’t even received and offer. If you’re selling your home and you’re facing this challenge, then you need to adjust the price of your home.
If you hit the right price on a home the first time, you can expect to sell it in a reasonable period of time If you choose to inflate the price, it will either not sell or take a long time while the market values creep up in your area due to general market conditions.
Selling your home is never easy. It is a grueling process and most people, once they decide to put their home for sale, want to move on in a reasonable period of time. \The only way to do this is to hire a knowledgeable real estate professional to help you price your home right the first time.