EFFECTS OF OVERPRICING

There are times when home owners who want to sell their house tend to overprice. It is either they are need of a lot of money or they think that their house is worth a lot because they do not know the real estate market nowadays. It is often the latter. But, overpricing the house comes with a lot of dangers. It is good when there are buyers who are willing to pay the price but most of the time, there are none.

If your house is overpriced, you attract the attention of devious real estate agents. These real estate agents will only tell you what you want to hear instead of saying that the value of your house is overpriced. This is because they get the advantage if they get you for their listings. They will have their sign on your yard for a long time. Plus, they will be able to collect buyers that would most likely not purchase your overpriced home. Instead, they will purchase other homes. Then, after a few months, they will tell you that it is overpriced that is why no one is interested in buying.

Overpriced homes tend to scare off buyers. It doesn’t even have to be overpriced. Expensive houses don’t interest buyers as long as they deem it as not worth the price even if it is. Most of the time, buyers are also on a tight budget when purchasing a house which is also why overpriced houses take too much time to sell. If it takes too much time to sell, the property becomes at risk. It is in risk to be removed from listings. It is also in risk of its market going down.

There are also chances that your home won’t show in search engine results. This is because the price of your home isn’t in the range of comparable sales data. And, if you do find a buyer for your home, it will raise another issue – home price appraisal. If the appraiser gives a lower price for your home, the buyer won’t be able to buy because the bank would not approve.

The only solution for you not to face these problems is to, of course, not overprice your house. It is better to ask a real estate agent, who is knowledgeable about the real estate market, about the right price for your house. You could follow up with his suggestion or maybe raise the price a little higher if you really feel that it is the right decision. This way, you are sure that your house will be bought in no time.

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