Why Overpricing Doesn't Work

In today’s hot seller’s market, many people are wondering if they should overprice their homes. The answer is no.
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A question I want to address today is: “Do buyers make offers on overpriced homes?” The market is sizzling hot right now. Many of our local areas are experiencing low inventory with high demand. This means we’re absolutely in a seller’s market. With conditions like these, it can be tempting for sellers to want to list above fair market value in the hopes that buyers will make an offer anyway. However, this isn’t a good idea. Despite the lack of inventory and the high demand we’re seeing in the market, buyers simply will not make offers on an overpriced listing. Buyers, just like sellers, study the market and are often working with knowledgeable Realtors to ensure they’re making the best decisions. Not only that, but most buyers’ search criteria will fall within their pre-approved price range for their mortgage. Buyers who are approved to purchase homes up to $250,000 won’t even look at homes in the $300,000 price range. They aren’t going to waste time on homes they can’t afford. Homes that are priced correctly, however, are flying off the market.

Buyers simply will not make offers on an overpriced listing.

So what happens if your Realtor suggests you list above market value, anyway? An agent who does this may not necessarily understand the market and could simply be trying to earn your business. 

At Joy Daniels Real Estate, we list homes to sell, and listing your home to sell means doing everything right from day one. If you’re going to list to sell, you should make sure your home is in show-ready condition, you should work with the right Realtor for the right reasons, and, most importantly, you need to price your listing correctly.

As a professional real estate agent, I’ve seen a lot of overpriced homes. Typically what will happen is that they will either undergo a major price reduction after sitting for too long on the market or they’ll just expire. 

Real estate is local. What happens elsewhere won’t be the case everywhere. Pricing your home correctly for your local market will not only help it sell, but it could help you to generate multiple offers above list price. 

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.