I recently read this article on the Texas Association of Realtors website. The short post addresses a few of the most common myths about home-selling. All three points are spot on- but I liked this one in particular:
Myth: If I price my home higher than market value, I’m leaving room for negotiations.
Truth: Buyers have no idea you’re employing this strategy and won’t understand why your price is too high. Many won’t even view your home, much less put in an offer. When your home is priced improperly, it’s more likely to sit on the market, making potential buyers think there’s something wrong it. When that happens, you’ll probably wind up with lower offers than if you had priced the home fairly at the start.
Home sellers in the Austin area are in maybe the hottest seller’s market we’ve ever seen. However, REALITY CHECK: A seller’s market doesn’t mean a stupid market! What’s really interesting about our current market is that buyers have also never been more savvy than they are now. Prospective home buyers have access to more information at their fingertips than at any other point in human history. Many buyers in the modern era know- even without the help of a Realtor- if a home is overpriced.
Even in this crazy seller’s market, overpricing is by far the most costly mistake you can make when selling your home.