Don't Sabotage Your Sale: Avoiding the Pitfalls of Overpricing
Finding the perfect buyer for your home is a complex experience. So, it’s important to understand that setting an unrealistic asking price can backfire, turning potential buyers away and ultimately hindering your sale. Here's why avoiding overpricing is crucial for a successful home sale…
Communities or cities like Dartmouth (seen above) and Halifax (seen above) are great examples of competitive markets…
Limited Showings
The Canadian Real Estate Association (CREA) reports that properties priced competitively typically receive more showings than overpriced listings [1]. This limited exposure translates to fewer opportunities to find the right buyer willing to meet your asking price.
Lingering on the Market
A home that sits on the market for a long time can raise red flags for potential buyers. According to the Canadian Mortgage and Housing Corporation (CMHC), homes listed for longer than average selling times may be perceived as overpriced or having hidden issues . This perception can deter serious buyers and prolong the selling process.
Negotiation Leverage Shifts
An overpriced listing weakens your negotiating position. Buyers who see your home has been on the market for a while might be more inclined to submit lower offers, ultimately affecting your final sale price.
The Winning Strategy
Market Research: Work with a qualified Peterborough Realtor to research comparable home sales in your area. This will help you determine a realistic and competitive asking price.
Professional Appraisal: Consider getting a professional appraisal to determine the fair market value of your home. This unbiased assessment can serve as a guide when setting your asking price.
Curb Appeal Counts: Invest in some minor improvements to enhance your home's curb appeal. This can make a big difference in first impressions and entice potential buyers. See this blog for more info on curb appeal and home sales.
Navigating Appraisal Responses:
When getting appraisals, you may hear a variety of opinions on your home's value. Here's how to navigate them:
Be Wary of Inflated Values:
If an appraiser comes in significantly higher than expected, it might be a tactic to win your business. Don't get overly attached to this number; ensure it aligns with market data.
Don't Dismiss Lower Valuations:
An appraiser with a lower valuation might have valid reasons based on market conditions or specific property features. Don't dismiss their reasoning; have an open discussion to understand their rationale.
Understanding Market Reality:
Remember, a home that sits on the market for an extended period can raise questions among buyers. They might wonder if the price is unrealistic or if there are hidden problems. If your home falls outside the price range of similar properties, it simply won't compete effectively.
By avoiding overpricing and employing these strategies, you can attract serious buyers, secure a smooth sale, and achieve your desired outcome in the Peterborough market.
If you want to talk about your specific situation let’s chat more. My name is Shaun Pearce, and I would honoured to help you with your real estate goals.
