Before listing a property ask the important question, how much is my house worth? Most people don’t realize how critical it is when listing a home on the market. Your asking price will either entice potential buyers, or scare them away. Before listing a home do your home work and research your neighborhood and houses that are similar to yours in the area. Visit a couple of open houses and see what the competition is. By doing these simple steps a seller will be able to determine what a fair asking price will be.
Fewer showings in a property can result when a property is listed to high. Unfortunately, most houses that are overpriced will make the other homes in the neighborhood look more appealing to potential buyers. Leaving your home to sit on the market. When a house sits on the market for to long it could make it harder to sell the home in the long run. When the seller finally drops the listing price and re-lists the house for less it may cause the buyers to think that the seller is over eager to sale. This could give the buyer the upper hand when negotiating. It’s better to list the home appropriately from the start to make a quick sale.
Another problem sellers could run into by overpricing their home is through the appraisal process. The purpose of an appraisal is to determine the value of the home. The seller will be forced to lower the price of the home in order to make the sale if the appraisal is lower then the asking price. This could also result in the sale falling through before closing.
If the property is in need of repair, or is badly outdated and the seller is asking for to much this could be a huge turn off to potential buyers. It’s a risky move to overprice in today’s over saturated housing market with so many new homes for sale. Most people are looking for a property that is move in ready, but if the properties asking price is fair a buyer might be intrigued and motivated to buy the home in the current condition.