If you’ve ever wondered “Should I price my home higher?” you’re not alone. This popular question is commonly asked by real estate agents and homeowners alike. While a home in a desirable location, close to desirable amenities, or built in a desirable style can command a higher price, it is important to remember that overpricing your home will not only prolong the selling process, but may also result in the loss of value.
Why you shouldn’t price your home too high
When it comes to selling your home, overpricing is a mistake you should avoid. A good agent will not make you think that your home is worth more than its current value, but will instead explain that the market still rules and a fair price will be achieved by respecting the market. Listed homes with price cuts are more likely to be sold quickly. But if you want to sell your home quickly, you can’t afford to overprice it.
Overpricing your home may cause it to sit on the market for months, and in that time, they will lose appeal to buyers. Eventually, a buyer will decide to look elsewhere for a bargain. If you’ve overpriced your home, expect to sell it for far less than its asking price. To attract buyers, you should price it competitively with other homes in your neighborhood.
Increases time on market
Many sellers wonder if lowering the price will increase traffic or keep it from taking longer to sell. The truth is, you will see a bump in traffic after lowering the price. However, you will notice that if you spend too long on the market, you may not attract as many buyers as you hope. This is because most of the activity in the first 21 days of the home’s listing.
Stigmatizes your home
If you are planning on selling your home, you should know the difference between a “stigmatized” property and a “stigma-free” one. A stigmatized property is a home that was formerly used as a haunted house and is associated with some kind of upsetting event. People will not buy this kind of home because of the negative psychological impact associated with it.
A stigmatized property has been a site of a notorious crime or a long-time vacancy. Some stigmatized homes are also considered uninhabitable. A recent murder in a house does not necessarily create a stigma, but a sex offender living nearby can make a buyer nervous. In most states, the seller is not required to disclose stigmatizing events, though some may require it.
In a seller’s market, home values tend to be higher than the list price. This is because other homes in the neighborhood have recently sold for more. A higher price means you won’t lose money if you decide to sell it later. Besides, there are several circumstances that can make you sell your home in the future. Here are a few. Read on to find out if you can increase the price of your home.