Home values are rising, which is wonderful news for home sellers. Escalating prices give prospective buyers more confidence to buy, which leads to more buyers and greater competition. Unfortunately, many home sellers make the mistake of overpricing, which can be dangerous at any time. Below is what can result from overpricing your MA property.
Connection Between Home Price and Marketing Timeframe
It is a well known fact that list price and marketing time are connected. Overpriced listings require more time to sell for a few different reasons. First, the higher in price range you go, the fewer the buyers. Additionally, overpricing your listing makes lower-priced listings more desirable. Thus, you will actually help others sell first. Thirdly, potential buyers are more scrutinizing in higher price ranges. Higher prices should be warranted by substantial upgrades or buyers will ignore it.
Listing Time and Selling Price
Additionally, the price for which a house sells will decrease as time passes. Buyers negatively view houses that do not sell quickly. They suspect that things must be wrong with the property (and not simply that it was overpriced).
Another factor is that sellers usually make price reductions over time. Even if you bring it to where you initially should have priced it, the damage will have already been done. Buyers submitting bids at this point will often submit lower prices than for a newly marketed home. In the end, your property will sell for less because you overpriced.
What Can Result From Overpricing Your MA Property
What can result from overpricing your MA property is lost time and lower profit. It is that straightforward. Even if the real estate market is hot and bidding wars are common, overpricing has no advantage. The first two weeks of a house being listed are the most important. That attracts the most interest, builds demand and gets you maximum value. Get assistance from a local real estate broker who understands the current market and competent pricing strategies to ensure that you do not make the mistake of overpricing.