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Gay realtors would like to advise you that overpricing your home is a grave mistake and also an all too common one in the real estate market. It is important not to let the realities of the market in your area be shadowed by rays of optimism. It is one thing to set and visualize the price that you want to sell it at and hope the right person will come along, and yet another to offer the home at a price point that is guaranteed to draw buyers.
Avoid “the kiss of death” by having an overpriced home on the MLS (multiple listing service online where homes for sale are advertised) for too long. This is because homes that are seen lingering for two long in virtual space are perceived as having something wrong with them even if there is no problem with the home at all, it’s called “market age”.
The average number of days a home stays on the market in your area is called the DOM. The DOM (stands for Days on Market) is easy calculated within the MLS you are using. An experienced realtor can easily calculate this for you. The idea is that if your home is on the market past the average DOM for your area, then it is quite likely that you have priced your home too high. The longer it stays on the market, the more overpriced you can consider your home to be.
Homes that are up too long on the MLS don’t usually get offers from buyers. Many buyers are reluctant to insult the seller by offering a price that is considerable lower than what is being asked. This is why many sellers never really find out, until it is too late, that their homes are priced too high.
Buyers also assume that other people have tried to get you to lower the price and that you have said no. The assumption is that you are holding on to your high price out of honor or because you really need the money and that is why the property has been online for so long.
Yet another reason that overpriced homes do not sell is because many of the buyers shop on MLS and use filters to search for the homes that are within a price range appropriate for a certain neighborhood. The buyer may be aware of how much homes go for in your area and set their search preferences on the MLS for a house in your area that is within the boundaries of what they want to spend. Your overpriced house will not show at all in the listings because of the buyer’s MLS filter preferences and for that reason alone you will never ever get a bid on the home.
Have a good long talk with the agent you are going to use to make sure that your home is not overpriced ~ it’s the #1 reason for long sales periods, having to start over from scratch, and really encouraging low ball offers.
Our agents usually have a good idea of what homes are selling for in the area and can help you price the house in a competitive way that is sure to get you a good deal.