Home prices are rising, which is great news for home sellers. Escalating prices improve home buyer confidence, which leads to more buyers and greater competition. This type of market often leads overpricing, which may create negative results. Below is the effect of overpricing your MA real estate listing.
How List Price Affects Marketing Time
It is well known that list price and the time needed to sell a property are connected. Overpriced properties sit longer for many reasons. First, the higher the price, the less buyers there will be. Additionally, high priced homes make lower-priced ones more desirable. Thus, overpricing basically helps competing listings. Thirdly, buyers are more critical as the price increases. Your property must have clear reasons for the high price or home buyers will lack interest.
Days on Market and Sale Price
Additionally, extended marketing times lead to lower sale prices. Buyers negatively view properties that do not sell quickly. They suspect that there must be issues with the house (and not just that it was overpriced).
An additional factor is that sellers typically apply price reductions as time passes. Even if you reduce the price to where you initially should have started, the damage will have already been done. Buyers interested in the home will likely submit lower offers than for a newly listed home. In the end, your home will sell for less due to being overpriced to start.
The Effect Of Overpricing Your MA Real Estate Listing
The effect of overpricing your MA real estate listing is both time and money. It is that straightforward. Even if the real estate market is hot and houses are selling for above asking price, overpricing has no advantage. It is always critical to begin at the correct price. That attracts the most interest, increases demand and gets you maximum value. Get help from an experienced real estate professional who understands the market and effective pricing strategies to ensure that you do not accidentally overprice.