WHAT ARE THE RISKS OF PRICING YOUR HOME TOO HIGH?

Ignoring market trends and listing your property above its true market value may be tempting, however, this strategy often backfires and can become a very costly mistake. Overpricing typically leads to the following consequences:

The first 30 days on the market are crucial! If a home is priced too high, buyers may overlook it or place it in a "wait and see" category. As the home remains unsold, its appeal diminishes, and buyers may start to assume it’s overpriced or that there’s an issue with the property.

In today’s market, most buyers begin their home search online. Real estate websites allow users to filter their search results based on criteria like price, displaying only homes that fit their budget. If your home is priced too high, it won’t appear in searches for buyers within your target range.

The longer your home stays on the market, the more you continue to incur costs (mortgage payments, utilities, and maintenance) without seeing a return. Each month that it remains unsold, you're investing more money into a property that may not yield that investment back.

For a buyer to secure financing, a home must undergo an appraisal from the bank. If a home fails to appraise at the agreed price, the seller will need to either lower the sales price to match the appraisal, or the buyer will need to come up with additional funds to cover the gap. Most buyers will be hesitant to pay more than the appraised value.

If the buyer’s contract includes an appraisal contingency, and the home doesn’t appraise as expected, the buyer could terminate, forcing the seller to relist the home. This not only incurs additional costs but also prolongs the time the property spends on the market.

Maintaining your home for showings is essential. Unless you’ve already vacated the property before listing, you’ll need to keep your home in show-ready condition, a significant task, even for those who are naturally tidy. While most people can manage this level of upkeep for a month or two, it becomes increasingly stressful the longer the home remains on the market.

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