When I talk to both buyers and sellers, there’s no shortage of the question: “How does one know if a listing is overpriced?”
There are two main factors that enter into the equation of a home’s true value: its price and condition. Buyers are looking for value, which is a direct reflection of the price versus the condition of the property.
Sellers thinking about listing their property need to understand that the name of the game is realistic expectations. Have a conversation with your Realtor and walk through your home viewing it through a buyer’s lens, rather than your own.
“Buyers are looking for value, which is a direct reflection of the price versus the condition of the property.”
Think about what a buyer may have misgivings about or object to when assessing the property’s condition, what updates can you make prior to listing that will maximize your ROI, and how you can compensate for what you can’t control.
As it concerns price, get to know the data and analyze the comparables in your area; if homes in your neighborhood are selling in 30 days or less, and your home is past that mark, it’s a direct reflection of the price or condition.
To ensure that your home isn’t overpriced, reduce the price in accordance with the collective buyer feedback, whether direct or indirect. As for condition, you’ll likely have to put a little more thought, time, and resources into adjustments. The sticking point for buyers could be anything from an obnoxiously painted room that needs repainting to an outdated kitchen or bathroom that could use a remodel.
Two signs, in particular, are all the evidence you need to know your home is overpriced:
1.There have been no showings for three weeks.
2.You haven’t had a single offer after 10 showings.
If you have any questions or need more information about all things real estate, please feel free to contact me. I’m more than happy to help you with your real estate needs, and I look forward to speaking with you soon!