Overpricing is the number one reason why homes don’t sell, period.
That’s why, if you hope to sell your home quickly AND for top dollar, it’s absolutely crucial you price your home correctly from the start. Or, at the very least, be able to identify when you’ve overpriced your home and fix this mistake immediately.
Otherwise, you risk losing buyer interest, sitting on the market, and selling for much less than your home is actually worth.
Could your home be priced too high? Here are seven key ways to tell:
1. You Chose Your REALTOR® Based on (the Highest) Valuation
We understand you want to get the most money possible for the property you’ve known and loved for so many years. And a good REALTOR® knows this.
However, they also know an overpriced home will be difficult to sell, which is why it’s so important to choose a REALTOR® based on their selling history, rather than how much they inflate your home’s value. If an agent comes to you with an overly high valuation price (compared to other free home evaluations you’ve received), there’s a good chance they’re only telling you what (they think) you want to hear.
2. Your Asking Price is Higher Than Other Homes in the Neighbourhood
If your asking price is much higher than that of your neighbours’, your home is likely overpriced. While that’s not to say your home CAN’T be priced higher than others in the area (based on its size, features, upgrades, etc.), it should be relatively close if you want to attract buyer attention.
This is yet another reason why it’s so important to work with an agent with a proven track record of successful home sales. They know that to price your home correctly, it’s essential to research what other homes in the area are selling for. By completing a comparative market analysis (CMA), your REALTOR® can ensure your home is priced in a way that is both competitive to other homes in your neighbourhood and attractive to buyers.
3. You’re Online Listing is Getting Zero Traffic
Given the fact that nearly ALL homebuyers begin their home buying journeys online, if your listing isn’t getting any results, something is wrong. In addition to providing your home with round-the-clock advertising and marketing, it’s also their job to ensure your listing stands out.
By pricing it correctly! Sure, an enticing description and magazine quality photos are important, but they’re no match for an appropriately priced home. If no one is clicking on your listing, your asking price may be discouraging buyers from seeing your property in person.
4. You’ve Had Very Few Showings (If any)
The simple truth is if your home is marketed and priced correctly, you will have viewings. While admittedly, a home’s condition, description and location will have some impact on a buyer’s decision to view your property, it’s your asking price that ultimately determines how many showings your home will (or won’t) receive.
In fact, a home that’s priced correctly according to current market conditions should attract several showings within the first few days on the market alone. If the only visitor regularly coming to your home to discuss “selling” is your REALTOR®, your home is likely overpriced.
5. You’re Only Getting “Low Ball” Offers (if any)
Maybe you are getting a few showings here and there, but if they all seem to result in nothing but offers way beneath listing (if any), you may overpriced. Keep in mind, however, if your home is overpriced, these “low ball” offers may not be low ball at all! They may be the buyers’ way of telling you they think you’re asking too much.
Another thing to consider is the longer your home sits on the market, the more buyers innately tend to believe there’s something wrong with it – otherwise, why wouldn’t it have sold already? Your home could be in pristine condition, but if a hefty asking price leads to extended days on market, you may have to settle for even less than you would if you’d just priced your home correctly from the start.
6. Your Neighbours Homes Are Selling
Remember the CMA we mentioned above? Here’s where that seemingly small step comes into play. The truth is, it doesn’t matter if you think your home is nicer or you’ve sunk substantially more into upgrades than your neighbour. What matters is what buyers are willing to pay for a home, like yours, in your area.
Of course, with desirable features such as granite countertops, the right renovations and other unique characteristics (a pie-shaped lot?), your home’s value should be reflected in your asking price – but not to the point where you price yourself out of the market.
Check out our previous post: 6 Simple Renovations to Make Before Selling
7. Your Home is Sitting on the Market
Last but not least, if your home has been sitting on the market for so long the listing expires, it’s overpriced (no thanks to the agent with the overly high home valuation). Here again, if you do still manage to gain buyer interest, the question will remain, “why has it been on the market for so long?” (which, in turn, leads to low ball offers, and the cycle continues).
Instead of re-listing only to have the same frustrating results, we recommend re-adjusting your asking price to the current market conditions (in which case it will sell).
How Much is Your Home Overpriced?
Drive-Bys and Online Reviews Only = 13%
Homes with very few to no showings are priced 13% too high on average.
Low or Infrequent Showings = 9%
Homes with infrequent showings are priced 9% too high on average.
Showings, But No Offers = 5%
Homes with regular showings but no (serious) offers are priced 5% too high on average.
Receiving Offers = PRICED CORRECTLY.
The Edmonton real estate market is nothing short of competitive. Sell your home quickly and for TOP DOLLAR with the help of one of our Free Home Evaluations. We will come to your home (on your schedule), determine your home’s true market value (it might be more than you think!), and put you on the path to selling quickly and for the most money possible!Terry Paranych on