The Effect Of Overpricing Your Southern California Real Estate Listing

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The real estate market is improving, which is wonderful news for home sellers. Escalating prices give prospective buyers more confidence to buy, which produces more buyers and more competition. This type of market often causes overpricing, which is not a good idea in any market. Here is the effect of overpricing your Southern California real estate listing.

How Home Price Related to Marketing Time

It is well known that list price and the time it takes to find a buyer are linked. Overpriced homes remain listed longer for many reasons. First, the higher the price, the fewer the buyers. Additionally, high priced homes make lower-priced listings look even better to buyers. So, overpricing basically helps your competition. Lastly, home buyers are more scrutinizing in higher price ranges. Higher prices should be warranted by differences in upgrades or buyers will bypass it.

Longer Marketing Time Can Determine Sale Price

Another proven pattern is that longer marketing times lead to lower selling prices. Buyers form a negative view of houses that do not sell quickly. They suspect that things must be wrong with the house (and not simply that the price was the problem).

An additional factor is that as a seller, you will probably make price reductions as time passes. Even if you bring it to the correct range, the damage will have already been done. Buyers submitting offers at this stage will typically present lower prices than they otherwise might have. In the end, your home will sell for less because it was overpriced initially.

The Effect Of Overpricing Your Southern California Real Estate Listing

The effect of overpricing your Southern California real estate listing is lost time and less profit. It is that simple. Even if the market is on an incline and bidding wars are occurring, this is not the opportunity to overprice. The first few weeks of a home entering the market are the most important. This generates the most interest, increases demand and yields the highest price. Get help from an experienced real estate professional who knows the current market and proper pricing approaches to ensure that you do not unintentionally overprice.