Why You Shouldn’t Overprice Your Home

December 4, 2020

When you buy a house, it will be one of the biggest investments you ever make. Like any investment, you will want to get the best return possible. When it comes time to list your home for sale, it is very important to list your home for the right price. Here’s why pricing your home right matters.

Less Offers

When you overprice your home, you will likely get fewer offers than if you correctly valued your home from the start. Like most big purchases, it is natural for people to compare things before they buy them. Buyers looking to buy a home often compare multiple homes that fall within their budget. If they can get a bigger house with better amenities for the same price that you are selling your home for, they may not consider buying your home at all.

Missing Out on Bidding Wars

Pricing your home competitively will attract a lot of attention from buyers. You will likely receive multiple offers quickly, creating a bidding war between buyers. This will drive up the price of your home, and you may even get more than you listed your home for! When you overprice your home, you are less likely to receive an offer, let alone multiple offers at the same time.

People Will Wonder Why It Isn’t Selling

The early weeks of a listing are considered some of the most important. If your home is overpriced and you are not able to draw any offers, your home is going to sit on the market. After a while, people will start to wonder why it isn’t selling and might think that there may be some underlying problems with the home. This could turn off a lot of potential buyers from even looking at your home.

The Appraisal

Appraisals are a key part of the home buying and selling process as they can determine the entire outcome of the transaction. If the appraisal comes in lower than your asking price the transaction will be delayed and potentially canceled. The buyer will have the leverage in negotiation and if you want to make the sale, you will need to lower your price anyway. 

You May Be Losing Money

The longer your home sits on the market, the longer you will be paying for your principal, interest, taxes, insurance, etc. If you already bought a new home, you will now be paying two mortgages, so the longer your home sits on the market the more money coming out of your pocket. Nobody wants to lose money on their home sale. So, once again, price your home properly the first time and it will save you a lot of headaches. If you aren’t sure how much to list your home for, a First Weber real estate agent can help you price your home to get you the best outcome on your home sale.

Home Search

First Weber sells real estate throughout Wisconsin: Metro Milwaukee and Southeastern WI, South Central Wisconsin/Greater Madison, Central Wisconsin, Northeast Wisconsin, Western WI, parts of MN, Michigan’s UP and Wisconsin’s great Northwoods. You can start searching for Wisconsin real estate and Wisconsin real estate agents at firstweber.com

Subscribe via email for blog updates