The Middle Tennessee real estate market is strong, which is welcome news for homeowners. Inclining prices give potential buyers more courage to purchase, which leads to more buyers and more competition. Unfortunately, many home sellers make the mistake of overpricing, which can generate less than desirable results at any time. Here are the dangers of overpricing your property.
How Home Price Affects Marketing Time
It is well known that home price and marketing timeframe are linked. Overpriced properties require more time to sell for many reasons. First, the higher the price, the fewer the buyers. Furthermore, overpricing your home makes lower-priced ones appear a better deal. Thus, overpricing essentially assists your competition. Lastly, potential buyers are more critical at higher price points. Your listing must have clear justification for a higher price or home buyers will ignore it.
Longer Days on Market Can Determine Sale Price
Additionally, the longer your property stays listed, the less you will get for it. Buyers build a negative view of properties that have remained unsold for extended time frames. They expect that something must be wrong with the house (and not just that it was overpriced).
Another factor is that as a seller, you will usually drop the price over time. Even if you drop the price to the proper range, the damage will have already been done. Buyers who do express interest will often submit lower prices than they initially might have. In the end, your home will sell for less because you overpriced.
The Dangers Of Overpricing Your Property
The danger of overpricing your property is lost time and less profit. It is that simple. Even if the market is on an incline and bidding wars are taking place, it is not worthwhile to overprice. It is always important to start at the right price. That generates the most interest, elevates demand and yields maximum value. Get assistance from an experienced real estate broker who knows the market and competent pricing strategy to ensure that you do not make the mistake of overpricing.