Sustainable housing and real estate in Kitchener-Waterloo Region

Dangers of listing your property too high.
January 13, 2009, 2:57 am
Filed under: Rebecca Sargent, Selling | Tags: ,

You’ve put your home up for sale, but no one is biting. What’s wrong?

Your home may be overpriced. You may think that starting off with a high price is the right way to go, but you couldn’t be further from the truth. If you come out with an overpriced home you may scare away potential buyers and send the message to other Realtors that you are not serious about selling your home. Remember: the market determines the price.

You might love aspects of your property- but that does not mean it affects the market value of your property. Potential buyers do not care how much you money you need to purchase your next home, how much you paid on the property or spent on improvements, or your personal attachments to the home. A feature you may love may have little to no reflection on the ultimate value of the home.

Your Realtor should be able to help you determine a competitive price based on location, size, style, condition, ammenities, and market conditions. A realistic price means that your property will sell faster. An overpriced property will lose its “marketability”.

The unsold home will ultimately be price adjusted downwards, as market staleness creeps in. You might even have to reduce the listing price below true maket value just to regain market momentum. Buyers may wrongfully assume something is wrong with the property.

A properly priced property should sell within a reasonable time period. Have your Realtor demonstrate a reasonable listing price based on market conditions through a Comparative Market Analysis (CMA).


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