When you put your home on the market, you want to get the highest possible price while homebuyers want to get the best possible deal. This means that if your property is overpriced; it could remain on the market for months without attracting any potential buyers.
If you are selling your house, it is essential to understand that pricing it correctly from the beginning is critical. If you happen to commit the mistake of overpricing your home, it is important that you identify the mistake as soon as you can and correct it immediately to avoid frustration.
So, how can you know that your home is priced too high? Below are some of the telltale signs that your property is overpriced.
Your Property Is Priced Much Higher than Your Neighbors
In most neighbourhoods, home values will be relatively close and consistent. One of the common signs that can help you know your home is priced too high is if it is listed with a price that is significantly higher than other homes for sale in your neighbourhood.
One of the common methods that real estate brokers use to determine a property’s value is by completing a comparative market analysis, commonly referred to as CMA.
This process involves a detailed analysis of sold properties in the past six months in a given neighbourhood. If your house is priced much higher than your neighbours, there is a possibility that your real estate agent did not perform a CMA to determine its value.
If a CMA was not done properly, it will not only lead to overpricing but also create problems when it comes to bank appraisals.
You Have Had Few or No Showings
If you have listed your home and your trusted Montreal real estate agent is marketing it properly, but you have had few or no showings at all, then it may be overpriced.
Some homes may indeed be difficult to sell than others due to their location or features, but you should not struggle to attract potential buyers if you price your property correctly.
If you feel frustrated, request your real estate agent to provide the average “days on the market” data for your neighbourhood and analyze it. If you discover that your property has been listed for at least 30 days longer than the average, then it is overpriced.
You Hired the Real Estate Agent Who Recommended the Highest Price
Before hiring a real estate agent, it is highly recommended that you interview at least three of them. In most cases, their recommended listing price will be similar since an experienced agent will consider several factors before determining your property’s value.
If you did not interview multiple agents or you hired one that recommended the highest price for your house, this could be another sign that your home is listed above its actual value. If several real estate agents recommend listing your home at a lower price, consider it the right price.
The Online Listing Has Attracted Low Web Traffic
When potential homebuyers are searching for a home, the internet is most likely going to be the first place to check. Before they go to view a particular home in person, they will first check the online listing for details.
If no one is clicking on your online listing, it could be a sign that your home is priced too high and potential buyers are being discouraged early on.
In some cases, buyers may even place a specific price range within their searches, and if your property does not fit within that range, it will not show in their results at all.