The most common reason a home doesn’t sell is because it is overpriced. This is the single most common mistake I’ve seen home sellers make. Is Your Home Priced Too High? Here are 8 signals that corrective price action is needed.
- There Have Been Few Showings
After listing your home, weeks pass by and you’ve had only a couple showings, you need to lower the price in order to generate showings. You can’t sell your home if no one comes through the front door.
- You Haven’t Received an Offer
If a home is priced correctly a homeowner should receive at least one offer within the first two to three weeks. If you haven’t received an offer after a couple of months, chances are that your home is overpriced.
- Neighbors’ Homes Are Selling & Yours Is Not
It can be frustrating for sellers when surrounding homes are selling and theirs is not. If you’re selling your home and this is happening, chances are that your home is priced too high.
- No Buyers Show Up at your Open House
Your Realtor actively markets an open house for your home and not one person walks through the door during the 2 hour open house. If that occurs, chances are that your price is an issue.
Like most people, buyers have busy schedules, but a buyer will make the time to visit open houses if they are interested in a home. A buyer will however not waste their time if they feel a home is overpriced.
- Internet Traffic Is Very Low
The majority of home buyers begin their home search online. When a buyer is interested in a home they see online, they will reach out to either the listing agent or contact their own Realtor to schedule a viewing.
One way to know your home is overpriced is if there has been little to no internet traffic or property inquiries.
- Showing Feedback Indicates Your Home Is Overpriced
A good listing agent will call each agent who has shown your home and solicit feedback. This is incredibly helpful and offers the home seller a chance to experience their own home from the buyer’s perspective.
If the feedback from showings is that a home is overpriced, this provides the seller the opportunity to make a needed adjustment.
- You’ve Received Low Offers
There is a good chance that if a home is overpriced, the offers received are “low ball” offers. If a home is overpriced and offers are much less than the listing price, you may need to reconsider whether your price is appropriate.
- Your Home Didn’t Sell & Expired
The most obvious way to know a home is priced too high occurs when it doesn’t sell and the listing expires. Instead of blaming the listing agent, it’s important to look in the mirror and realize that the home was overpriced. Every home has a price range that is acceptable to home buyers. If a home’s listing price is relatively close to the number a buyer considers fair, it will sell.
Is your home priced too high? If any of the above signals have occurred with your listing, take the bull by horns and speak to your agent about a price reduction.