With inventory still low and homes in high demand in Central Texas, if you’re a seller who wants your home to sell quickly, you need to make sure it’s priced correctly when it hits the market. We’re sure by now you’ve heard about the importance of home pricing, but have you ever wondered what the downsides are to pricing your home too high or too low? Let’s dive into the impact overpricing or underpricing can have on your home.
Overpricing Your Home
The spring market tends to be competitive because many sellers are coming out of hibernation from the winter and are ready to sell their homes. While we understand many sellers are excited to get their homes on the market and are tempted to list them higher, you still want to make sure you know what your home is worth and be strategic with your pricing.
Overpricing your home can have some huge disadvantages, including:
- Discouraging Buyers: If the home is priced too high, buyers won’t even consider looking at it. Fewer showings for your home means fewer offers written on your home.
- Price Reductions: Sellers will reduce their home price to reignite interest in the home, which could cause buyers to become suspicious and wonder if something is wrong with the home.
- Longer Days On Market: The longer a home sits on the market, the less appealing it becomes to buyers.
- Lowball Offers: Overpriced homes will start to receive below-market offers, leading to frustration and possible desperation from sellers.
Underpricing Your Home
Believe it or not, there is such a thing as underpricing your home, and it can come back to bite you just as severely as overpricing. Underpricing your home is a strategy that’s often used to start a bidding war to receive multiple offers, but it can backfire if it’s not done correctly (and with the help of a trusted real estate agent).
Here are some disadvantages of underpricing your home:
- Leaving Money On The Table: Listing your home for less money than it’s worth means less profit you will receive and less money in your pocket.
- Discouraging Buyers: Just like overpricing your home, underpricing your home can signal red flags to buyers and cause them to wonder what’s wrong with the house.
- Wrong Perception: Pricing your home low can lead buyers to think it might be a fixer-upper that needs a lot of work.
- Seller Confusion: While having 20+ offers on your home might sound like a great problem, if most of the offers are the same price with similar terms, it can get confusing to decide which one to choose.
Overpricing and underpricing your home both can cause issues you don’t want to deal with as a seller navigating the spring real estate market. Now more than ever, hiring an experienced real estate agent who can price your home correctly and give you the most profit in the fastest amount of time is important. Interested in getting your home on the market? Reach out to The Curtis Team and put us to work for you today!
