Here are some good reasons as to why you shouldn’t overprice your home:
1. Fewer potential buyers: When you price your home too high, you may discourage potential buyers from considering your property. They may look at other homes in the same price range and find better value in those properties.
2. Longer time on the market: The longer your home sits on the market, the less desirable it becomes. Overpricing can lead to your home staying on the market for an extended period, which can be frustrating for you as the seller.
3. Lower final selling price: Overpricing your home can actually result in a lower final selling price. Buyers may assume that you are not willing to negotiate on the price and will move on to other properties.
4. Appraisal issues: If you receive an offer on your home and the buyer requires a mortgage, the lender will require an appraisal. If the appraisal comes in lower than the asking price, the buyer may not be able to secure financing and the deal may fall through.
5. Wasted time and money: Overpricing your home can result in wasted time and money on marketing efforts, staging, and open houses. You may also end up paying more in mortgage payments, property taxes, and maintenance costs while your home is on the market.
In summary, overpricing your home can lead to fewer potential buyers, longer time on the market, lower final selling price, appraisal issues, and wasted time and money. It’s important to price your home appropriately based on market conditions and comparable sales in your area to avoid these pitfalls. Hire a professional to help you explain where the local market is at, and where your house fits into the current market.