Why Overpricing a Home to Sell is a Bad Idea

Overpricing a home to sell sounds like a good idea – of course, you want to get the most money out of the sale of your home. At the end of the day, it’s just not a good idea because overpricing a home can backfire. Here’s why:

Scaring Off Buyers
You might think, “If I overprice my home and someone gives me a lowball offer, I’ll still at least sell my home for what it’s worth.” While this sounds like a good tactic, in theory, it is not one I recommend. Buyers will often remove a home from their viewing list if they realize a home is overpriced. Buyers may not want to bother giving the home a shot if they feel insecure about their offer being accepted. After viewing an overpriced home, buyers will also still sometimes wait for the home’s price to be lowered to make an offer. As a result of situations like these, an overpriced home is likely to have fewer potential buyers.

Lengthy Listing Time
The first few days of a listing are typically the likeliest to attract a high offer. Generally, if a home stays up for sale too long, perception of the value of the property can fall in the eyes of potential buyers. Some potential buyers may even wonder if something is wrong with the property! Listings that stay above market value for a long period of time often eventually sell for less than asked. A home that is priced at the suggested value will generate more interest and sell faster.

The Bank May Reject Buyers
Many buyers depend on banks to finance their home purchase. For their own security, the bank will typically evaluate the property and price to determine their own risk. If the bank considers the purchase price to be unreasonably high and their own risk too great, the bank may decline to finance the property. Unfortunately, this can happen with multiple potential buyers, potentially raising the listing duration and further compounding the difficulty of the sale. This situation can lead sellers to simply reduce the price of the home.

Are you selling your Houston home, but are not sure about the process or how to best price your property? Let us help you navigate the process. We will do nearly all the work to sell your home, ease your mind by saving you time, and it’s free! Contact us today at 713-364-4883 or info@angelfultzrealty.com. Have questions or comments? Leave a comment below.