8 Signs Your Home is Priced Too High – Part 1
Pricing is without a doubt the most critical factor when selling your home. You want to price your property right from the beginning, otherwise you risk missing your peak marketing period which can cost you more money than you think. The unfortunate outcome is that you’re more likely to end up with less money in your pocket once the sale is complete.
How do you know if your home is overpriced? There are many signs to know if your asking price is not meeting buyer’s expectations. If you’re selling your home or plan to sell, watch out for these signs, and if needed make a price adjustment as soon as possible!
Your home is priced higher than neighbors. More often than not, in most neighborhoods homes will be priced quite consistently. Realtors determine a property’s value by completing a comparative market analysis (CMA). The properties of comparison are typically those that have sold in the past 3-6 months of similar size and features within the same neighborhood. If data isn’t sufficient, other areas built within the same timeframe may also be sourced.
If your home offers similar living space, condition, features, lot size etc. and is priced much higher than your competition it is likely you won’t get much interest.
Certain elements can lead to a higher price point. Things like a massive lot, basement development, substantial upgrades and more.
You’ve had very little or no showings at all. Extreme weather conditions can be one reason buyers hold back from viewing properties. If you’ve experienced no showings with -30 weather, that is fairly common. However, if your home is newer to the market and you haven’t seen a showing in the first few weeks, that can be another sign your property is priced too high.
As a seller this can be quite frustrating, especially when you work hard every morning to have your home is ‘show ready’ condition.
You’ve had many showings, but no offer. Depending on the price point, competition, number of buyers and a few other factors, properties that are priced right tend to see an offer in the first 10-12 showings. When a property has had 12 showings and no offers, this is a good indication buyers are seeing better value for the dollar with competing properties.
Though it can be hard to receive a price adjustment suggest from your Realtor, having lots of showings with no further interest is a strong indicator it may be your next best step.
Showing feedback indicates your home is overpriced. One thing we value is showing feedback from other Realtors who have shown our listings to their buyers. Their feedback can tell us exactly how your home compares to the other 4 or 5 they saw that same day.
Feedback is invaluable as it allows you as a seller the opportunity to correct things a buyer may object to. For example, if multiple buyers are saying the kids’ bedrooms are painted too bright, or the closets are too small, this is a clear indication you may have work to do. You could repaint in neutral tones, or declutter your closets while also buying some baskets to help organize what you have. Winners and Home Sense have some incredible, affordable organization options that also add a splash of décor to your closet spaces.
Next week we’ll be back, sharing the next 4 signs to know if your home is priced too high. Be sure to join us, or check out our blog at www.WeSellLeduc.com/blog
If you’d like a free market evaluation, or are considering buying or selling a home, give us a call. It is always our greatest honour to serve you!
Jason Rustand with RE/MAX Real Estate serves with the highest level of integrity and excellence every time. For more info on this topic or others related to real estate contact LIKE our Jason Rustand Team Facebook page, call Jason direct at 780.980.2828, email email@example.com or visit WeSellLeduc.com.
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