Home prices are increasing, which is great news for homeowners. Rising prices improve home buyer confidence, which results in more buyers and more competition. Unfortunately, home sellers get the urge to overprice, which is not a good idea. Below is what overpricing your Florida real estate listing might cost.
How Home Price Affects Marketing Time
It is well known that list price and the time needed to sell a home are linked. Overpriced listings remain listed longer for many reasons. First, the higher the price, the fewer the buyers. Additionally, overpricing your listing makes lower-priced listings appear a better deal. Thus, overpricing actually helps competing listings. Finally, potential buyers are more critical as the price increases. Your home should have clear reasons for the higher price or buyers will bypass it.
Listing Timeframe and Selling Price
Additionally, extended marketing times lead to lower sale prices. Buyers negatively view properties that have remained listed for longer than normal. They imagine that there must be issues with the house (and not necessarily that it was overpriced).
Another factor is that sellers usually apply price reductions as time passes. Even if you reduce the price to the proper level, the damage will be done. Buyers interested in the home will typically submit lower prices than for a newly listed property. In the end, your property will sell for less due to being overpriced originally.
What Overpricing Your Florida Real Estate Listing Might Cost
What overpricing your Florida real estate listing might cost is lost time and less profit. It is that simple. Even if the real estate market is hot and properties are receiving above list price, that is not the opportunity to overprice. It is always critical to start at the right price. That brings about the most interest, builds demand and gets you maximum value. Obtain assistance from an experienced real estate professional who understands the current market and effective pricing strategies.
