Red Flags Your Home May Be Overpriced
You take the time to prepare your home and list your property. The family is ready to show on a moment’s notice. You are just waiting for the offers to roll in after the first open house. No offers, then a week passes, a month passes, then 2 months…. Showings are almost non-existent. The confidence you had to begin with turns to doubt, now you are wondering how do I know if my home is overpriced. Learn to spot the signs that you may have overpriced your home.
1. You Ignored the Pricing of Comparable Properties
If you listed your home with any decent agent they would have gone over pricing of similar homes in your neighborhood that have sold recently in a Comparative Market Analysis. Did you follow your agent’s recommendation of pricing? Often sellers get emotional about their home and want to ignore the data. Go back and look at the CMA what were comparable homes selling for?
2. Lack of showings
It is important to sell your home in the first 20-30 days on the market. You should have an influx of showings in the first several weeks. Your busiest weeks will typically be the first 3 or four weeks. After that showings will dwindle down to almost nothing. Have you listed your home and have had no showings or very few? It is only going to get worse. If you start off with very few showings and have gone weeks with no showing that is telltale sign your home is probably overpriced.
3. The Feedback Indicates You Are Overpriced
Hopefully you are receiving feedback on a large number of your showings. Feedback is a great tool once you are listed. There are two things to look at in the feedback. One, buyers and agents may flat out indicate the property is overpriced. Or two, the buyers are ultra-critical of your home. They may not say the home is overpriced but they nitpick it to death.
4. No Offers
You may be getting showings but no offers. If you start hitting 20 showings and you have not received an offer it is time to re-look at your pricing strategy.
5. Low Online Activity
In this day and age your real agent can track online views of your home. If your home is not receiving the views online it will follow thru to lack of showings as well. Your home is showing up in the home searches but buyers are rejecting it before they even view it online. Most likely the stats of your home don’t hold up to your competition.
6. You Get Your Agent Buy Your Listing
Did you hire your agent solely based on the fact they gave you a higher listing price than everyone else? There is a name for that in our business it is called buying a listing. An agent will pay on your emotions and give you an inflated list price list price. Of course, you are willing to believe it they are the professional. But, in doing so you probably did not pay attention to all the details like the agents marketing plan or make them back up their pricing with solid market data.
7. If Your Home Expired on The Market Unsold
Your listing contract is up and your home hasn’t sold. At this point you have missed all the signs your home is overpriced, now it’s time to get realistically. Don’t let your home languish on the market unsold.