5 Reasons Sellers Over-Price Their Homes
Everyone has seen them – the house that is listed for significantly more than the neighborhood. It leads one to wonder what special feature it has that the others don’t: is the view exceptional or can you run a small restaurant from the chef’s kitchen? There must be a reason, but typically it’s merely an over-priced listing.
Sellers over-price their homes for a variety of reasons; here are the 5 most common reasons sellers price their homes too high.
- The decorating looks like a magazine. Buyers want to imagine their own furniture and lifestyle in the home; the furnishings will not entice a buyer to overpay.
- The seller wants to “test the water.” Listings get old quickly; by missing the critical few weeks with an over-priced listing, the seller could lose potential buyers.
- The seller picks minor details from comps and makes assumptions. Not every feature difference will affect the sales price in any meaningful way.
- The seller is emotionally attached to the home. Of course it’s natural to love your home, but it’s important to be realistic when pricing the home.
- They assume they can negotiate. Sometimes they can, but usually the buyer will just move on.