The Problem With Pricing A Home Too High
By Charissa Jones
If you’d let me, can I tell you a quick story?
This story is about sellers with (what else?) a home to sell. They see prices in their market trending up and decide now is the time to list their home. It was too big, anyway, and with the kids off to college, a smaller place is for them.
They originally bought the house for $500,000 10 years ago and now, they want to sell it for $1,000,000. A home very similar to theirs just sold for $700,000 but they know there’s not much inventory and they’re adamant about the million-dollar price tag for their home.
They’ve enlisted a real estate agent who is also a friend, (it was the first choice that came to mind) and the agent, newly licensed and unsure about comps, agreed to their price, no questions asked.
One week later, the sellers call the agent, asking why there are no offers on the home. The agent says, “Be patient, they’re coming.”
Another week passes by and the sellers again call the agent. A few of their friends have been asking why in such a hot market as the one we’re experiencing in Augusta, the home still hasn’t sold.
Again, the agent asks for patience but there’s a tinge of unease in the sellers’ response.
Finally, after a month of sitting on the market, the sellers realize it might not be the time after all to sell their house (they can use the extra rooms for offices or even build a little gym). Thanks, agent, we’re done.
First of all, I’d never let this scenario happen to you. Even in a seller’s market like this one, pricing is key. If you price a home too high and it sits around, people really do start to wonder what’s wrong with the house, and you never want anyone saying that about your property. (Spoiler alert: It doesn’t end well for the sellers.)
There’s a huge misconception that homes are selling fast and with price appreciation, you can price a home absurdly high and get every penny. It’s not true. You still have to understand the comps, you still have to know where prices are trending. A really experienced agent can get you the absolute most value, while counterbalancing the dreaded scenario of an overpriced home.
If you’re thinking about selling, let’s talk about pricing strategies. I know this market and its limitations, and want you to get the best possible value for your home. Contact me today and let’s make sure we price your home right: [Email: firstname.lastname@example.org Phone: (706) 631-2422