With the real estate market in Chattanooga experiencing steady growth in the past few years and the lack of homes on the market, is is easy to fall into the trap of overvaluing your home. While everyone wants to make money on their investment, it can be detrimental to start your asking price on your home too high. What does the wrong price say to potential buyers and how does it ultimately affect you? Read on to learn about the pitfalls of pricing your home too high.
Buyers are now spending hours and hours looking at homes online before they even contact a real estate agent. What does that mean? Educated buyers. Buyers know what home prices should be in the areas they are looking because they have invested their time in educating themselves about price per square footage, update costs and school districts...all things that affect their purchase and eventually their resale. Buying a home is not often the end of the process for buyers in this transient job market. Pricing your home above market prices keeps potential buyers away from your home because they sense you are not a serious seller. No traffic means no sale.
Sell By Comparison
If your home is the highest in the neighborhood, buyers are going to use your home as the home to which to compare all others. Most people are looking for a bargain, even a perceived one. If your home is priced higher, but is comparable to others in your neighborhood, it will help sell your neighbor's home, not yours. Savy shoppers are looking for the home with the most updates, best floor plan and location, all at the best price. You should get the return on your investment, but keeping the market of your area in mind is key to a sale.
Time GameStarting high and spending time on the market while others around you are selling is daunting. Time on the market also is perceived as a bargaining tool for buyers. Coming out too high can lead to less money in your pocket in the long run.
Nowhere to be Found
Buyers look in price increments of $10,000. For example, $300,000 to $310,000 and if your home is listed in the $350,000, it is not being seen by potential buyers. This applies across the board to both MLS and the websites such as Trulia and Zillow. Pricing your home correctly will keep your home visible.
There are many factors you must consider when pricing your home. The market value, location and demand should all be taken into consideration. An experienced real estate agent will be able to give you all the relevant information to price your home for today's market. Contact us today to schedule your listing appointment with our lead agents, Diane Patty and Lisa Brown. We are ready to assist you.