Uh-Oh...Is My Home Overpriced?

by Jennifer Herman Lloyd 03/12/2019

It's the Spring Market, you're a Seller and you want to avoid the dreaded "Is my home overpriced?" situation. In the real estate market, the value of your home depends on several factors (other than the price you paid for it). The price buyers are willing to pay for it at any particular time may depend on prevailing economic conditions, mortgage rates, the season of the year, plus a whole host of other things that may affect the value of your house. When I'm approached by people with that question, I give them what I call "The Fearsome Four" to consider:

  1. THE PRICES OF OTHER HOMES IN THE NEIGHBORHOOD ARE WAY LOWER THAN YOURS. Buyers usually know the general sale price of homes in a particular location, and when they notice your property is way over that, they take notice (and not in a good way!). Most Real Estate Agents often go through a comprehensive process before advising clients on an appropriate price range, so you may not want to unduly pressure your agent into raising their estimate. Over-pricing often leads to potential buyers passing on seeing a property. 
  2. YOU HAVEN'T HAD MANY SHOWINGS OR OFFERS MADE SINCE LISTING. This one is always a big red flag. If you haven’t received any offers and no prospective buyers have come to view the property, that's an issue. Ask yourself the following questions: is your home being marketed and are other homes in your neighborhood selling? This is typically an indicator that you may want to re-evaluate either your marketing plan and/or your pricing strategy. 
  3. OTHER SIMILAR HOUSES IN THE COMMUNITY ARE SELLING BUT YOUR HOUSE IS NOT. There are different reasons why this may be. For instance, are those houses newer, larger, or have better features? Sometimes however, the reason their house is selling, and yours is not is because it is overpriced. I like to keep my Sellers informed on what is selling in their neighborhood and area so that everyone has a realistic idea of pricing, especially if an adjustment to pricing needs to be made. 
  4. YOUR LISTING TERM IS COMING TO AN END WITHOUT YOUR HOME BEING SOLD. When you sign a listing contract with an agent, it is for a specific time period or term. If this period expires without your property being sold, it could be an indicator that your house is priced too high. If that is the case, it's a good idea to review your price downwards. Be aware, that it doesn't mean there are no buyers; it just means the buyers who came through were not willing to offer that much.

It’s so critical to price your house correctly. No one wants to get caught in that “Is My House Overpriced” situation. With 23 years of Real Estate experience, I can help guide you in not only setting a realistic sales price, but also implementing an effective marketing plan to get your house SOLD! Contact me at [email protected] or 267-446-0667. Buy, Sell, New Construction,or Investment, I can help! It's ALL about Real Estate with Integrity AND Heart! Let's GO! ~ Jen 

About the Author

Author
Jennifer Herman Lloyd

“Real Estate is not only in my blood, it’s my passion!” ~ As a third generation Realtor, who has been a licensed and active local agent since 1996, I am available to address all of your Real Estate needs. My philosophy is that there’s so much more to Real Estate than just the sale. Real Estate is about Building Relationships…these are strong and lasting relationships with my clients, my fellow agents, and my community. Never a "one-size-fits-all" mentality, I offer a customized approach for each individual client. I am passionate about all facets of Real Estate and believe in the importance of providing my clients with first-class service which includes a high level of professionalism, along with superior negotiating skills, service, and expertise. Having been a Premier Agent with local Home Builders including The David Cutler Group and Guidi Homes, I provide over 16 years of New Construction knowledge & experience. Selling all price ranges and specializing in new construction & resales in Montgomery, Bucks, Delaware, and Chester counties, I believe in the importance of conducting my real estate business with both Integrity AND Heart. As an alumni of Germantown Academy, I continue to be an active member of my alma mater. I currently reside in Lower Gwynedd with my husband of 20+ years and our two daughters.

I LOVE WHAT I DO!! It’s not just Selling Homes, it’s BUILDING Relationships with INTEGRITY AND HEART… and I look forward to working with you!