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How to Know When You’ve Overpriced Your Home’s Asking Price

A difference of a few thousand dollars in your asking price may not seem like a big deal, but it can really have an effect on the selling of your home. Here’s what to know about overpricing your listing price.

  • Pricing your home at or a bit below market value is the sure way to go. Statistics and seasoned Realtors have repeatedly proved that this is the best way to sell your home, and especially in a timely manner. Looking at the comps and your home’s appraisal value is definitely the best way to reach an accurate asking price point. The first few days of putting your house on the market are the most critical to getting noticed; you need to set your price well to fit inside buyers’ search parameters. Usually if you start getting offers within the first few weeks, then the asking price is good.
  • Don’t be scared about pricing your home too low. The market “decides” the right price no matter what; if the house is slightly under-priced, multiple interested buyers will place offers, and in essence bid the price back up. If you don’t care how long it takes to sell your home, then you can price your home higher. Just don’t expect it to sell for at least a few months!
  • If you refuse to negotiate with multiple offers, there may be a problem. Listen to and observe the buyers that come around; those that are both interested and not interested. Get feedback on what they like and don’t like, so that you can take this into account when dealing with your asking price.
  • However, the housing market does still have an affect on speed of sale. Look at how fast the homes like yours in your area and neighborhood sell (and for how much), so that you can get a feel for the right speed. If the inventory of the housing market is low then your home may sell faster, and vice versa (this applies to homes priced at the median level).

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