How to Know If Your Home is Overpriced

Putting your home on the market can be an emotional experience, no matter what your reasons are for selling. One of the most common mistakes in the home selling process is overpricing your home. By pricing your home too high, you could ultimately end up with less money in your pocket. If you do happen to make the mistake of overpricing your home, it is crucial that you work with your realtor at the Lake of the Ozarks to adjust the price. There are actually some signs that may indicate you have priced your home incorrectly for the market. If you have experienced any of the red flags below, it may be time to make a price adjustment.

Your Home Is Priced Much Higher Than Your Neighbors

In most neighborhoods, home values will be relatively the same. There are very few things that would cause your home to be priced extremely higher than a comparable neighbor's home. When listing your home with a realtor, ask for a comparative market analysis (CMA). This is a detailed breakdown of sold homes in the area that best matches yours over a certain period of time. Based on the sold prices of these homes, you and your realtor can make an informed decision on what your home should be priced at.

Your Home Has Very Little Showings

The initial excitement of getting your home on the market, and seeing the photos and virtual tour displayed on the internet may soon wear off if you do not receive very many showings. A low number of showings or even worse, zero showings indicate you may be priced too high. By lowering the price you hopefully should generate some activity and showings.

You Haven't Received An Offer

If your home has been on the market for several months with a ton of showings and you still haven't received an offer, it may be due to pricing. If a home is priced correctly, it can expect to receive an offer after a number of showings. This varies among types of homes and markets. Ask your agent to provide you with the average number of showings it takes to generate an offer. 

Your Neighbors Homes Are Selling

It can be really frustrating to see your neighbor's home sell, when yours is still on the market. If this keeps happening, you may be priced too high. There are many things that can influence the sale of a home. Take these things into consideration when comparing your home with your neighbors:

  • Different style of home - Craftsman vs. Traditional
  • Square footage
  • High end upgrades such as granite 
  • Location in the neighborhood - corner or double lot/private and wooded
  • Newer features - roof, windows, HVAC, etc. 

Feedback Tells You It's Priced Too High

One reason to hire a real estate agent at the Lake of the Ozarks, is to receive feedback from people viewing your home. Feedback is often given to your agent and it is important for the homeowner to make any corrections based on the buyers' opinion of the home. If prospective buyers believe it is overpriced, you may want to consider lowering the price, as they have most likely been looking at similarly priced homes.

Let Devine & Associates Help You Sell Your Home

One of the top reasons your home sells quickly is because it was priced right! If you overprice your home in the beginning, it could cost you more money. If you are planning to sell your home, contact Devine & Associates at (573) 392-9900. Our goal is to price your property right to put the most money in your pocket that we can!

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Devine & Associates Real Estate
(573) 392-9900

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