Showing Suite Real Estate Blog

” Is my house overpriced? “

It’s a question that crosses every seller’s mind at some point if they’re attempting to sell their property. Properly pricing a home to sell can be tricky, especially if a seller is trying to sell in a slow market or if their home value has depreciated since they purchased it.

Still, it’s crucial that the listing hits the market with an attractive, and reasonable, price tag. Despite knowing this, some sellers will attempt to list a property above market value with the old “start high, come down later” routine, but this poor practice can leave a home stale on the market with little hope of selling.

So if you’re sitting around wondering, “Is my house overpriced?” then ask yourself these 4 questions first:

1. Is your home priced to compete with neighboring listings?
   Before putting your home on the market, your agent should have presented a comparative market analysis – or CMA – to determine what the ideal listing price is for your home. Review all of the recent activity in your area to weigh the likelihood of your home selling at the price in mind. If your house is listed far above what any home in the area has recently sold for, then the answer to the question “Is my house overpriced” is a resounding YES!

2. Has there been little or no interest in your home since it hit the market?
   Houses fresh on the market generally experience a large amount of showings within the first few weeks of being listed. If your house has had little traffic (and isn’t in shambles) then you may need to reduce the listing price. Don’t get stuck in “we’ll just see what happens” mode – a home sitting on the market for too long makes buyers wonder if there’s something wrong, which will only add to the issue.

3. Have there been showings, but no offers?
   This scenario is where sellers may find themselves asking “Is my home overpriced?” on a near-daily basis. If you’re at this point and your home is priced well above comparable homes also for sale in the area, it may be time to reduce the listing price. If you’ve done your homework and priced your home according to the CMA from the start, then it may just be the right buyer hasn’t come along yet.

4. Did you interview multiple agents and pick the one that suggested the highest listing price?
   A good real estate agent will present the most comprehensive data in order to build a solid case for the suggested listing price. If you speak to multiple agents, all suggesting listing prices in the same ballpark, then you’re being pointed in the right direction. If you come across an agent that strays from the pack – run. These agents may not be experienced in your area or have your best interest at heart.

Once you’ve answered the questions above, answering your original question of “Is my house overpriced” should be a cinch and your next course of action should be a given.

If your house is overpriced, have a sit-down with your listing agent to determine what the listing price should be reduced to. If it’s not, call a meeting with your agent to see how you can get more exposure for your listing and draw in more buyers.

Do you know what buyers think of your home?

Feedback is essential while selling your house. Make sure your agent is giving you fast, accurate feedback from buyer’s agents.

Real Estate, Sellers

When someone comes to view your property for sale, you will want them to be moved emotionally to the point where they decide, “Yes, I want to buy this house.” Whether you want to admit it or not, properly staging your home can play a subconscious role in a buyer’s mind to give them the ammunition they need in order to pull the trigger and make an offer.

Good home staging accentuates the home’s positive attributes and minimizes any negatives to increase the chances of an offer from visiting buyers.

A good way to keep you on track with home staging is to remember to cater to all five senses:

Make it easy on the eyes. (sight)
Clear out all of the clutter, give the place a good scrub, remove any evidence of ownership (family photos, heirlooms, etc), and open all of the blinds to allow the natural light to filter in. The idea is to provide a fresh clean slate so that the buyers can see the home’s potential and imagine the place after they move in with their belongings.

What’s that sound? (hearing)
Have you ever taken a moment to sit and listen to the sounds of your home? People want to be able to relax inside their home to escape the hustle and bustle of the world, so make sure they are soothed the moment they set foot inside. Click off the television in exchange for a radio playing soft jazz or classical music. Have a water fountain? Turn it on. Not only will this drown out any traffic noise, but provide a calming effect.

Something smells great! (smell)
Be careful when tending to the sense of smell as you will never know what potential buyers are allergic to. Turn off automatic air fresheners, avoid spraying anything to the air, and stay away from candles. Instead, try the natural route and open all of the windows to allow the house to air out. If you want to bring in some flowers, be sure to do a little homework and look into what flowers are least likely to bother buyers with allergies.

Don’t leave a bitter taste in the buyer’s mouth. (taste)
Who doesn’t enjoy a nice snack? Place a bowl of candy or tray of juice out in the open with a little note for buyers to help themselves. It will be a nice treat as they bask in all of your home staging efforts. For those who want to go all out, consider catering in finger foods. You can kill two birds with one stone by hitting the sense of taste and smell at the same time by baking a fresh batch of cookies or whipping up a pot of coffee. Just be sure to lay out some cups, cream, and sugar for the buyers to help themselves.

What a nice feeling. (touch)
At the very least, buyers will be opening and closing doors and touching counter-tops, so be sure that the place is cleaned from top to bottom. You will also want to make sure that the house is at a decent temperature; if it’s a hot day consider turning on the a/c or placing some fans. Snowing outside? Turn the heater on and set it at a reasonable temperature.

By paying close attention to the five senses in your home staging endeavors, potential buyers are likely to have a positive experience visiting your home. It is important that a potential buyer feels comfortable when viewing the property; they may want to come back on a more permanent basis. Remember that your home will not get a second chance to make a good impression. Be sure to make it last by printing out some four-color flyers with several photos and home details the buyers can take with them when they leave.

Of course, every grand performer (in this case, your home) loves a review. So be sure that once the showing has taken place that your real estate agent is following up by requesting the buyer’s feedback on the home. If there is something scaring off buyers you’ll need to know so adjustments can be made.

Photo Credit: REAL STAGING

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