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The Pitfalls of Overpricing: Why Setting the Right Price for Your Home Matters

From deterring potential buyers to prolonging the selling process, overpricing your home can be detrimental in so many ways. Learn the mistakes to avoid when pricing your home for sale in Maine.

Weakened Negotiating Power

A price reduction is virtually inevitable on overpriced homes. This weakens the ability to negotiate the price as a seller, and often results in having to accept a lower offer than what a reasonable initial pricing strategy might have yielded.

Limited Buyer Interest

Most online home searches begin with a price filter. Your overpriced listing may not even appear in the search results of buyers who may otherwise have been an ideal match. And even if your home does appear in search results filtered by size, it will be compared to more appropriately priced homes, which will highlight your overpricing.

Potential Appraisal Snags

Even if you are lucky enough to get a buyer willing to overpay, their bank may put the brakes on the deal if they are borrowing to fund the purchase. Lenders most often approve mortgages based on appraised value, not the sales price. If the appraisal comes in lower than the selling price, the financing may likely fall through, complicating the deal.

Extended Time on the Market

Overpriced homes tend to stay on the market longer than reasonably priced homes, for a variety of reasons. When buyers see how many listing days your overpriced home has, they’ll make assumptions — right or wrong — about why it hasn’t sold, and be less likely to ask to view it.

Buyers’ Brokers May Avoid It

When real estate brokers feel a home is overpriced, they’re less likely to show clients the home. They represent the interests of their clients and don’t want them to overpay or have the deal fall through due to an inability to get financing. As a result, an overpriced home may have fewer showings.

Bad Impression on Buyers

Even if you manage to get an interested buyer to view your overpriced home, the excessive asking price may leave a sour taste in potential buyers’ mouths. They may feel disrespected or that you’re trying to take advantage of them, even if those aren’t your intentions.

Disruption in Plans

With a price set too high and a longer time sitting on the market, overpriced sellers can expect a disruption in their timing plans. You may miss out on favorable market conditions, experience an inability to make financial plans as expected or even have to delay professional plans for a relocation.

Accurately pricing your home is essential for attracting the right buyers, minimizing time on the market, maximizing profit, ensuring a smooth appraisal process, and providing effective negotiating leverage.

The knowledgeable real estate brokers at Swan Agency will conduct a thorough market analysis to determine the optimal listing price for your property. Our goal is to get you the best price without sabotaging your ability to attract viable buyers in a reasonable timeframe. Contact us today to get started.

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