Warning: 4 Reasons To Avoid Overpricing Your Home

By Erin Catron

I am a multifaceted entrepreneur and real estate leader dedicated to making a meaningful impact.

Every seller wants to get the most money possible for their home. After all, it’s your biggest asset, and you want to make the biggest return you can from it. However, there are harsh consequences to overpricing that you don’t want to face. That’s why today, I will share the four common pitfalls of overpricing your home:

1. Extended time on the market. Some sellers think pricing high might lure in buyers willing to overpay, but this rarely happens. Instead, your home spends more time on the market, leading to increased carrying costs like taxes, insurance, maintenance, and mortgage payments—expenses you want to minimize.

2. Reduced buyer interest. When a home stays on the market too long, buyers start to wonder if something is wrong with it. A stagnant listing makes buyers hesitant to even view the home and will just move on to other listings.

3. Appraisal issues. Even if you manage to get a higher-priced contract, appraisal issues can arise. If comparable homes in your neighborhood don’t support your higher price, the appraised value will fall short of the purchase price. This can cause deals to fall through as buyers may not be able to secure financing.

4. Lost opportunities. Properly priced homes not only sell quickly, but also receive multiple offers. For example, we recently had a seller willing to list slightly below market value. This strategy increased buyer activity, resulting in multiple offers over the list price. They ended up with a cash offer, a quick close, and favorable terms. Pricing your home too high will cause you to miss out on good opportunities like this.

Don’t be afraid to price your home at or even slightly below its market value. This approach increases demand and prevents missed opportunities from buyers who might otherwise overlook your home. If you need advice on how to get your home ready to sell for the most money, please don’t hesitate to reach out to us at (918) 396-8247. Talk to you soon!