Why is it Important to not overprice your Home
Updated: Jan 4
It's important not to overprice a home when selling because it can have several negative consequences.
Overpricing a home can make it less attractive to potential buyers. If a property is significantly overpriced, potential buyers may not even consider viewing it or making an offer. This can lead to a longer and more difficult selling process.
It can cause it to sit on the market for an extended period of time, which can make it seem less desirable to potential buyers. When a property has been on the market for a long time, buyers may assume that there is something wrong with it or that there is a lack of interest in it. This can make it even harder to sell the property.
It can lead to a lower final sale price. If a property is overpriced, potential buyers may be hesitant to make an offer or may offer a lower price than the seller is asking. This can result in a lower final sale price, which can be frustrating for the seller.
You run the risk of your buyer's mortgage lender telling them the home's not worth what they're willing to pay for it and if it returns a value significantly below the offer you have accepted, the buyer may either try to negotiate a discount or even pull out of the sale altogether.
Most buyers use property portals to kick-start their search for a new home – and one of the key search filters is the maximum price they want to pay. As a seller, if you price your home too high, it's likely to appear in fewer searches and bypass many potential buyers. That's a big chunk of the market to miss out on. It may also compare unfavourably to homes listed in the same price bracket that have been realistically priced.
Buyers prefer properties that are fresh on to the market, rather than those that have been listed for some time – and you only get one chance to make a first impression. If you price your home right, you may have several buyers interested at the beginning, which could push up the price naturally if it progresses to a bidding war.If your home is priced too high, you may not get this interest in the first place.
If you have already had an offer on the home you want to move to accepted, you risk losing it if your current property takes too long to sell. Property chains can be long and complex and not everyone will be prepared or able to wait for you to get your target asking price. What’s more, mortgage offers only tend to be valid for three months – and if you exceed this period while holding out for a high sale price on your existing home, you may have to apply again costing you additional fees and causing further delays.
Overall, it's important to price a home accurately in order to avoid these negative consequences and to maximize the chances of a successful sale