What is the biggest lie in real estate?  “I can overprice my house to make more money.”

I’ve written about the danger of overpricing your home several times in one way or another.  Rephrasing it as “the biggest lie” I think might hit differently for some people when they read it.  It is truly a lie and one that is very easy to get trapped in.

So why do people believe it?  There are many reasons, but here are some of my thoughts.  In a hot market, which we have been in the past several years, homeowners will often hear friends and family say how their home went for well above list price and that they had 5+ offers on it.  Many people hearing that, then think they might as well start high if it’s going to end up going over anyways.  Others hear vague information on the news say that it’s a hot market and assume their house and situation will be the exact same experience.  Some people might actually need more money out of their house for whatever reason and want to try to get more.

None of the reasons mentioned above warrant overpricing your home.  Something I heard and learned early on in my real estate career is that buyers don’t care.  They don’t care how much you owe on the property, how much you want to make off of the deal, or even what the house 2 blocks or 5 miles away sold for.  They will walk into your home and offer you exactly what they’re willing to pay.  The market ultimately determines the price your home will sell for.  

Working with an experienced real estate agent will help you navigate this and figure out the best price based on current market conditions.  If you price too high you will lose out on all those buyers who actually are the right fit for your home.  They won’t wait around for the price to come down, they will move onto the next house.  Then, when you do decide to drop your price, they sometimes won’t be in the market to buy or want to.  Some buyers of mine also mention that they worry the sellers will be difficult to work with since they were so unreasonable with the pricing to begin with.  Pricing right at the market or even slightly below market value will sometimes create that multiple offer situation sellers are wanting and the sales price can end up higher.  

There are lots of factors that go into pricing a home but not overpricing is definitely one of the most important.  Remember…a home doesn’t sell for one of two reasons…1) Price or 2) Condition.  

If you have questions about what you think your home is worth, contact me and I’m happy to give you a market analysis!