Home prices are improving, which is welcome news for homeowners. Buyers are encouraged to buy when they see values going up, which produces more buyers and greater competition. Unfortunately, many home sellers make the mistake of overpricing, which is dangerous in any market. The following is what can result from overpricing your MA real estate listing.
Connection Between List Price and Marketing Timeframe
It is well known that home price and the time needed to find a buyer are linked. Overpriced listings may become stagnant for several reasons. First, the higher the price, the smaller number of buyers there are. Secondly, high priced properties make lower-priced listings look even better to home buyers. So, overpricing actually helps competing listings. Finally, potential buyers are more critical at higher price points. Higher prices should be justified by differences in features or home buyers will bypass it.
Days on Market and Sale Price
Another proven pattern is that extended marketing times lead to lower sale prices. Buyers negatively view homes that have remained listed for longer than usual. They expect that things must be wrong with the property (and not necessarily that the price was the issue).
Additionally, sellers usually drop the price over time. Even if you drop the price to where you should have started to begin with, it is usually too late to reverse the damage. Buyers interested in the property will typically present lower prices than they otherwise might have. Ultimately, your property will sell for less because it was overpriced to start.
What Can Result From Overpricing Your MA Real Estate Listing
What can result from overpricing your MA real estate listing is time and money. It is that simple. Even if the real estate market is hot and bidding wars are occurring, this is not the opportunity to overprice. The first few weeks of a home being listed are the most crucial. This produces the most interest, elevates demand and gets you maximum value. Contact an experienced real estate agent who knows the current market and practical pricing approaches.