Is Your Home Priced Too High? How to Know

How To Know If Your Home Is Priced Too High?

We get it. It’s a seller’s market out there (for now), but even in a hot market, overpricing your home can be bad business. At Hendrix Properties, we’re big believers in the data behind properly-priced homes; they sell faster and for more money than homes that are asking too much.

But maybe you’ve already signed with an agent and are on the market with a price you’re worried is too high? If you suspect you may have overpriced your home, here’s how to tell.

Your Neighbors’ Houses Keep Selling

The number one way to tell your home’s overpriced? If your neighbor's homes are going on and off the market while your home is sitting there! Particularly if you’re in a “hot” neighborhood like Dilworth or zip code 28277 (Ballantyne), your home should be seeing offers within the first few weeks on the market. Unfortunately, by pricing yourself too high, buyers see your neighbors’ lower-priced homes as a value and quickly snap them up. Oops!

You’re Not Getting Any Showings

There are only a few reasons you wouldn’t be getting showing requests in a seller’s market. One is that your home’s photos aren’t good (your agent used a professional photographer, right?), and the other is that you’re overpriced. Think of buyers searching under “thresholds.” Those are usually nice, round numbers like $400,000 or $275,000…if your home is priced above (especially just above) one of these thresholds, you may not even appear in buyers’ MLS search results. Of course, a good buyer’s agent should show them your home, anyway, but you can’t count on it.

Offers Aren’t Coming

Of course, without showings, you won’t be getting offers, but what if you have tons of showings but no offers? This clearly indicates you’re not only asking too much but way too much. Buyers know home prices are somewhat negotiable, so if they’re interested, they’ll throw out an offer to see what might happen. If they come to the table already feeling like you’re way too far apart on price to meet at an agreeable price, they may choose to avoid the negotiating hassle altogether.

You, Not Your Agent, Set the Price

Particularly in a low-inventory market, some Realtors are anxious to get more listings. In an ideal world, you and your agent will agree on a price based on data, comps, and experience. In a world where your home is overpriced, you’ll throw out an inadvertently high number, and your agent will say, “No problem!” Sellers can’t be as objective about price as agents can, so if you price your own home, you may be asking for trouble.

We’ve written before about overpricing your home and the stress it can bring. There’s more to selling than sticking a sign in the front yard, but remember, no amount of effective marketing will work if your home is priced too high!

At Hendrix Properties, we’ll work with you to develop a data-driven price that’s right for your specific market and based on your home’s direct comps. Call us today at 704-343-8555 to find out how we can get your home sold fast.

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