4 Signs Your Home Is Overpriced

Source: http://financialedge.investopedia.com/financial-edge/1009/4-Signs-Your-Home-Is-Overpriced.aspx?partner=globeandmail#axzz1doP5dtWn

If your house has been sitting on the market for three or more tortuous months, your asking price may be to blame. Here are four tell-tale signs that it’s time to slash that listing price.

  1. No one is stopping by for a  look. Your house has been on the market for a month or  two, and showings have been scarce to none. Wait a second, do you hear that? Ah  yes, it’s the sound of warning bells ringing. If buyers are not even taking the  time to look at your house, it’s pretty sure sign that the price is too high.

    Of course, you may argue that this doesn’t necessarily mean that there’s no interest in your home. While you’ve had no  actual showings, that brochure box by your “For Sale” sign is empty and your  online listing has received hundreds of hits. If that’s the case, this only  proves that there is interest in your home, but something is keeping  buyers from scheduling a showing. What’s holding them back? You got it -your  absurdly high asking price.

  2. You’ve had plenty of showings but no  offers. So, your home has attracted a handful of  showings since it’s been on the market, but you still haven’t gotten an offer.  Of course, the Pepto-Bismol pink shower in the master bathroom or the turquoise  blue carpet in the living room could be to blame.

    Poor  design and color choices can certainly scare away potential buyers. But if your  home is tastefully decorated and updated, it’s more likely that your price needs  to come down. Some experts say if you’ve had 10 showings without an offer, your  home is probably overpriced. (Learn about alternatives to selling in Can’t  Sell Your Home? Rent It.)

  3. Buyers shower your home in  criticism. You’ve had plenty of showings, but your  realtor has noticed that prospective buyers make the same negative comments  about your home time and again. For example, they may continually complain that  your house is plagued with a pungent odor reminiscent of wet dog and rotten  tomatoes. Or perhaps they all point out that the 1970s-themed kitchen, complete  with pea green appliances, is a little outdated.

    Be sure to ask your realtor to notify you of any negative feedback from buyers. While some  of the comments may be difficult to hear, a little constructive criticism may  help you sell your home in the long run. Remember, there’s no room for hurt  feelings in home-selling.

    It may turn out that other homes  in your neighborhood have remodeled, modern kitchens and a more inviting smell.  If this is the case, you’ll either need to freshen up your home, give your  kitchen a makeover or (you guessed it) cut your asking price. After all, if the  price is right, prospective home buyers may decide they can live with a  pea-green dishwasher – or buy a new one.

  4. You have the highest priced home on the  block Let’s say comparable homes in your area are  priced much lower than yours. Houston, we have a problem. If your house is the  most expensive three-bedroom, two-bath, 10-year old home in your zip code, it’s  probably going to be the last one to sell.

    Ask your realtor for regular updates on home prices in your area. He or she can show you the  closing price on homes similar in size and age to yours and notify you when  comparable homes drop their prices. This will help you decide if it’s time for  you to drop you price, as well.

So, after picking up on some of these warning signs, you  finally give in and drop your price. But you still haven’t received an  offer. What’s the deal? You probably haven’t cut your price enough.

Realtors say if you’re going to lower your price, don’t do it in small  increments. After all, there’s really no difference between $225,000 and  $224,900. Buyers won’t fall for that. If you’re going to slash your price,  you’ll have to lower it by at least $5,000 for buyers to take  notice.

Read more: http://financialedge.investopedia.com/financial-edge/1009/4-Signs-Your-Home-Is-Overpriced.aspx?partner=globeandmail#ixzz1icPlJVbN

Leave a Reply

Your email address will not be published. Required fields are marked *