You may think that because you're ready to sell your home, you may set whatever price you choose. However, no matter how hot the market is, overpricing your home can be detrimental. Studies have shown that pricing is the primary variable that determines how long a real estate property remains on the market. If a home is too expensive, even the best-conceived marketing strategies might sell utterly worthless.
 
While it is theoretically possible that increasing your home's offer and selling price may occur, this does not indicate that testing the market by pricing your home over its value is a wise approach. Keep on reading to find out why!
 
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It May Give a Negative First Impression
If you're selling your home, it's critical to make a good first impression as new listings attract the greatest attention. If an individual acquires a home that's overly expensive, the home seller risks making a good first impression even before the potential home buyer had a chance to explore the premises. This might also lead to a lack of attention and offers on your home.
 
Buyers today can run comparables in a region online to discover the costs they may expect. If your property is noticeably more expensive than its neighbours, potential buyers may choose to skip it.
 
It Will Linger on the Market for a Long Time
The older the listing, the less appealing it is. Many prospective buyers question the condition of a home that has been listed for more than two or three months. They may question if there is a big defect that will be expensive to fix? Maybe there is a problem with the neighbourhood? Or is it possible that the home seller won't lower the price because they’re stubborn? One may want to simplify the purchase of a property by avoiding homes that may provide future problems.

Be on the Lookout for these 6 Warning Signs That Could Mean Expensive Repairs.

Your Listing May Not be Found by Buyers
Buyers always have a plan when looking at listings; looking for a home in this location, with this many bedrooms and baths, and in this particular price range. They may estimate what their desired home's typical price is by comparing it to their alternatives.
 
As a result, your home may not be searchable if it's too expensive in comparison to the prices of other homes with the same area and criteria.
 
It Improves the Appeal of Competitors' Listings
Buyers will generally pick the cheaper property when forced to decide between two identical homes. If your home doesn't have anything that justifies the price, then this option is understandable. A seller may assume that someone will ultimately acquire it and retain the high price. This isn’t the case, your property will spend a lengthy period on the market, but it will have the added benefit of making the area's other properties appear more reasonable.
 
Browse our list of sales in the GTA here.
 
This Can Result in Lower Offers
Homebuyers may attempt to make a low-ball offer by taking advantage of the fact that your home has been on the market for months and is no longer attractive to potential buyers. This bargaining strategy might present itself in the case of overpricing your property.
 
If you want to ultimately finalize a deal, you risk selling your property for less if you consider a low-ball offer. It's easy to prevent this situation if you price your home appropriately from the beginning.
 
It Will Lead to Appraisal Issues
You will then have to confront the obstacle of evaluation, even if you do locate purchasers who agree with your pricing. Before approving a loan, lenders need to have the property assessed and this is where similar prices will be used to set the proper price for your property. Banks might turn down mortgage applications from purchasers who don't meet their prices, forcing you to start over.
 
Visit our mortgage calculator to see if you can afford your mortgage payments.
 
It's natural to believe that your home is worth more, especially if you've worked hard to maintain it and even raised a family there. People often develop attachments to the memories that are created. The best thing is that your Real Estate Agent can appreciate your home's importance more than anybody else.
 
Correctly pricing your property is important not only in today's real estate market, but in any market. If you're selling your home, your sole objective is to make a sale.
 
Contact Jay Paramanathan today for help determining the best price to set for your property and yet be able to earn a solid profit.