Dangers Of An Over Priced House

December 17, 2021

Squander the early days
Listings get the most showings in the first 30 days of being on the market. If a home is priced too high, buyers may choose to ignore it or put it in a “wait and see category.” The longer the home sits unsold, though, the more negatively it is viewed. Buyers will think it must be overpriced or there is something wrong with the home.If the home is on the market too long, potential buyers will think they are in a better negotiating position and you may end receiving a low ball offer, which can be frustrating

Online Search Issues
Nowadays, most buyers go online to begin their home search. Real estate sites with search functionality will allow visitors to input their criteria, including price, and homes that meet the buyer’s specifications will be displayed in the search results. When your home is priced too high, you effectively screen yourself out of these searches.

Having to Chase the Market Down
If you list your home too high to begin with, you may find yourself making incremental price drops, but never quite catching up with the market.

Financial Implications
The longer your home remains on the market, the longer you have to continue to make mortgage payments and accompanying utility and home maintenance costs.

Appraisal Problems
Sometimes, a seller may be lucky enough to get an offer at their optimistic price. It may be that your home is in a very desirable neighborhood or that the buyer agrees that your house is something special. However, you are not out of the woods yet.
For your buyer to get a mortgage, they need to have the home appraised. The dollar amount the bank will lend the buyer is based on the appraised value of the house rather than the agreed upon purchase price between the buyer and seller.
Unless you were able to vacate your home before putting it on the market, you will need to maintain your home in show ready condition, which is a considerable amount of work, even for the tidiest of individuals.
Keeping floors, carpets, windows, kitchen, and bathrooms clean as well as maintaining the landscaping, are essential to making your home shine and to attract potential buyers. This level of cleanliness is doable for most people for a month, maybe two, but it gets to be more stressful the longer a home is on the market.