Selling your home in today’s real estate market has lots and lots of moving parts to it! One of those moving parts, maybe even the most important moving part, is pricing your home! Over the years I have listed hundreds of houses, and have been on even more listing appointments, and the one thing I have heard many sellers say is that it is better to list your home high because you will make more money! And, with today’s real estate market with low inventory and multiple offers on homes, I have heard this even more!
In 2022, many sellers overpriced their home – and got multiple offers that drove the price up even higher! But in 2023, we are no longer in that market and many buyers are becoming more and more savvy about the market. Buyers are aware of the market and what homes are selling for and are unwilling to overpay for a house!
So when I talk to my sellers about the price I recommend for their home, we definitely have conversations about what happens when they list their home too high for the market:
You Will Attract Fewer Buyers AND Fewer Offers
Why? Buyers look at things like price, bedrooms, baths, size, amenities and condition! If your house has everything they want in a house BUT is out of their price range, they are going to definitely pass it by and look at other houses that have these same features BUT is priced within their price range!
You May End Up Taking A Price Reduction Anyway
If your home sits on the market for too long you may be forced to take a price reduction. Buyers will begin to wonder why you had to take the price reduction in a market where homes are selling quickly!
A Buyer May Wonder What Is Wrong With Your House
If your home has sat on the market for a longer than normal period of time, buyers are going to wonder what is wrong with your home that someone didn’t make an offer on your house!
Your House Will Still Need To Appraise
Most buyers today are getting a loan to buy the house! The lender will require an appraisal to be done. In 2022 it was not unusual for a buyer to agree to waive the appraisal or to agree to make up the difference between the purchase price and a low appraisal. But those days are gone and your contract will most likely include a contingency that the house must appraise for the purchase price or the buyer will be able to either request a price reduction or terminate the contract!
What Is The Solution To This Real Estate Myth?
Talk to a Realtor who can help you gauge what the market is doing! This means having a Realtor who can objectively look at your house and it’s current condition! It means having a Realtor who know the homes that have not only sold in the neighborhood, but also what homes did not sell and be able to explain why! It means looking at what is currently on the market that is your competition as well as looking at those homes which are under contract but not yet closed! You want a Realtor who is not personally invested in your house! Many sellers I talk to today equate the dollar value of their home with the good times and happy memories they have here! And when you live in a home, you sometimes tend to overlook those things that a potential buyer will look at and take into consideration when trying to decide what your home is worth to them!
If you are thinking of selling your home, and want to know what your home is worth in today’s real estate market, feel free to call/text/email me and let me know how I can help! I have listed homes all over the Richmond area and would be happy to stop by, take a look at your home and give you my opinion of value and answer any questions you may have – no obligation, no pressure! I am YourRichmondHome Expert!