When you're getting ready to put your house on the market, one of the biggest challenges that you'll face is pricing the home correctly. While your real estate agent will do some market research on other homes for sale in your area and present you with a number that he or she feels is reasonable, the final decision for the listing price will come down to you — it's your home, after all. For many homeowners, there's a strong temptation to list the house as high as possible. For example, if your agent suggests $175,000, you may decide to list it for $185,000. Overpricing your home is understandable — you want to get as much money as possible — but doing so can have several negative results. Here are some reasons to avoid overpricing your home.
It Will Take Too Long To Sell
By the time many homeowners place their house on the market, they're eager to sell. And, while there might be some sentimental challenges to actually selling the home, you probably want to find a buyer and get the deal done as quickly as possible. When you overprice your home, it's difficult to sell it quickly. Many prospective buyers who feel that the price is too high (or whose agents advise them of this issue) will simply fail to make an offer, which will result in the house sitting on the market for longer than you'd like.
You'll Have Frustrating Negotiations
The negotiation process between a homeowner and prospective buyer can be challenging at the best of times. However, when you've overpriced your home, you'll likely have made the negotiation process even more challenging — and perhaps even downright frustrating. An overpriced home will often receive offers that are significantly lower than the asking price; although the offer might be more in line with the house's value, you can feel insulted by the offer, which compromises the negotiation right off the bat. In many cases, your listing price and the offer will be too far apart to find a mutually agreeable price.
You'll Be Inconvenienced By Viewings And Open Houses
The longer your home stays on the market, the more your agent will likely recommend holding open houses. Additionally, people will also arrange private viewings — even if the house is overpriced and the prospective buyers are more curious than serious. Each of these occurrences can be an inconvenience. During open houses, you, your children, and your pets will have to leave the home for at least a couple hours, which can get annoying. For viewings, you'll also have to leave. However, because of peoples' work schedules, many viewings are held in the evening, which can further be a hassle.