Common Effects of OverPricing
How do you know if your home/listing is overpriced? If you are experiencing any of the following you may have an overpriced home/listing.
The most obvious is few to NO showings. If no one is coming to your home there are a few potential other factors besides price. They maybe but are not limited to location, neighborhood, odors and general condition of the home. At this point in our market now is not the time to be over market value as the market continues to indicate a slow decline. Another sign is an extremely long marketing time. Our market time has more than doubled in the last year and a half, but it shouldn't take 6 months to sell it either. Price IS King.
Now, what are the effects that overpricing has on buyers (and sellers)? For starters they won't even see it, why? Because it is out of their price range; all the rest of their criteria matches ie: square footage, beds and baths, location. The buyers who can afford your home can more often than not afford MORE than your home and so it becomes overpriced to those buyers as well. The other factor is financing. What happens when the home doesn't appraise at the offered price? 1)The buyer won't get financing 2) The buyer would have to make up the difference (Not in a buyers market) 3)The contract gets renegotiated down to appraised value
It is so important to be ahead in a changing market than draging behind and choking on the dust. Our market is changing, it is not doom and gloom it is rebalancing. It is the ebb and flow of life.