Pricing your home is easily the most important decision you will make when it comes time to sell, and if you’re choosing to sell within a seller’s market you may be left with a few extra questions, one of which could be if you can over price your home due to the current market. While there is no black and white, yes or no answer to this question, many Real Estate professionals would strongly advise against this tactic as it could end up going the opposite direction you had hoped, and actually drive traffic away from your listing.
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There is a BIG difference in over pricing your home and accepting an above asking price offer, and unfortunately for many seller’s these lines are starting to blur and listing prices are not being marketed accurately. While you may very well end up accepting an offer that is well above the market value, and in turn, the “normal” asking price on your home, this shouldn’t be reflected within your asking price.
By over pricing your home the biggest problem that you may have is simply losing out on traffic, whether for in person tours or online views, both of which could result in less offers and limited interest. While many buyers in the current market are prepared and willing to offer above asking, because of this they are often looking at homes that are below their maximum price range so that they are indeed able to offer up extra cash to try and seal the deal. By over pricing your home, you may be within their max budget, but your property may also not be considered due to the “lack” of wiggle room that it may allow buyers to over bid.
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Another red flag when listing too high is that with the lack of traffic your listing may receive, you may also be forced to then lower the price of your home later down the line, and while there may be no “negative” reason for the price reduction, many buyers will see this as a red flag and wonder what is wrong with the property that led to the reduction without ever completing research or asking why the price was changed. Thus, these buyers may choose to tour and ultimately purchase a different property due to the fear of potential damages or repairs that may be needed causing the price to change.
It is always important to work with a knowledgeable real estate agent who knows the ins and outs of your specific area and market so that they are able to advise you on the best list price in order to help generate traffic, receive offers, and ultimately, result in a profitable sale.
If you’re currently searching for a new home, are ready to sell your home and are in need of a qualified and experienced seller’s agent, or if you have any questions regarding New York Real Estate, please feel free to contact our office at any time.