Homeowners all want to sell their properties for what they are worth or more.
There is nothing wrong with wanting to find a buyer willing to pay top $$.
And usually before learning what price will sell the house, owners want to test out the market.
Good real estate agents will listen to the seller, but educate and guide them on current values.
At the end of the day, you need to hire a good agent and set the price right from the beginning.
Most common reason a property does not sell is Price.
Typically it has nothing to do with how often it is being advertised, the quality of brochure, if it’s on Zillow, etc.
HOWEVER, there are some instances where price is NOT the problem.
It could be due to:
- bad marketing / photos
- dirty house
- poorly staged
- slow real estate market
- high interest rates
- HOA Drama
9 Signs Your Home Is Priced Too High
1. Priced Too High For The Neighborhood
In most neighborhoods, home values are relatively consistent.
If your house is $50,000 higher than other homes for sale in your area, you’re probably asking too much.
One of the great things about using a realtor is that they use comps and a market analysis to correctly price your home.
A comparative market analysis (CMA) is a detailed analysis of sold homes in the past 6 months in a neighborhood.
Make sure you discuss a CMA with your agent to make sure you’re asking price is realistic.
2. You’ve Barely Had Any Showings
If the home has been listed for sale for a few weeks and you’ve only had one showing, you should adjust the price to generate activity.
Have a weekly meeting with your agent to get feedback, and discuss what is going on.
Listings tend to get the most action right after they are listed so if you’re not getting any open house traffic right away it’s a bad sign.
3. You Haven’t Received An Offer
If your home is priced correctly, you should get an offer within the first month or two.
If you haven’t gotten an offer within two months (or more), there’s a good chance your home is overpriced.
Additionally, if your real estate market is in a “seller’s market” you might get an offer within a few days when priced correctly.
While it’s true that there are certain kinds of properties that take longer to receive an offer, the average house should not.
Luxury homes or waterfront properties may not sell as quickly.
So large homes in Newport Beach, Dana Point, Laguna, Sunset Beach, etc.
4. You Hired The Agent Who Suggested The Highest Price
In any given real estate market, there can be thousands of agents.
When you’re looking for someone to sell your home it’s important to ask the right questions.
First, it’s very important that you understand how the agent came up with the listing price for your home.
If one of 4 agents you speak with suggests a price 12% higher than the others, you need to know how they got that number.
Unfortunately, some realtors will “buy a listing”, meaning they suggest a price higher than the home’s actual value – to get you to sign listing agreement.
If you hired the one realtor who suggested a significantly higher price than the others, chances are your listing is overpriced.
Again, don’t forget to request a CMA if you live in Huntington Beach, Anaheim, Tustin, Irvine, wherever!
5. Your Neighbors Homes Are Selling
This probably also means– your listing is probably overpriced.
If you’re seeing “sold” signs pop up all around your neighborhood, here are a few things that make a difference in pricing:
- The style (ranch, two story colonial, etc.)
- The size – 1500 sq ft vs 2500 sq ft, etc.
- The amenities (pool, granite counters, etc…)
- The location of your home (corner lot, private, busy street, etc.)
- Maybe their homes are eco-friendly
But a good rule of thumb is if other homes or condos in your neighborhood are selling and yours isn’t…. well you know the rest.
6. Showings Feedback
Feedback from other real estate agents and buyers who are viewing your property can be incredibly helpful.
If you’re not receiving feedback from showings, ask your realtor what is going on.
Typically buyer agents love to sell a listing agent about price and give their opinion.
It’s important because it allows you to correct things a buyer might have a problem with.
If it comes back to you that your home is overpriced, you should definitely consider adjusting the price.
7. You’ve Received Low-Ball Offers
Though most overpriced houses won’t receive any offers, some may receive a couple offers that are much less than the listing price.
However, if your listing price is way over market value they are probably just offering you the actual value of your home.
If you receive numerous offers that you would consider “low ball” you may need to reconsider your price.
It’s so important to make sure your home is priced right.
If you put the right value on your home it should sell quickly, especially in today’s market.
Make sure you’re working with a knowledgeable realtor that has your best interest at heart.
Of course it could be a bad buyers agent suggesting their buyers bid so low, but unlikely.
For the most part you can ignore these type of buyers as they probably will end up chasing a short sale.
8. Website Visitors Are Very Low
The internet has changed the real estate industry in the last 10-15 years.
Over 90% of home buyers are beginning their home search on the internet.
When a buyer is enthusiastic about a home they see on Zillow or Trulia, they contact the listing agent or their buyers agent ASAP.
One way to know your home is overpriced is if there has been little to no internet traffic or property inquiries.
A professional real estate agent with a strong understanding of how to advertise homes for sale online will provide:
- traffic statistics
- # of buyer leads
- total $ they spent online promoting your house
- # of phone calls
9. Your Home Didn’t Sell & Expired
Possibly the most obvious way to know a home is priced too high is if it doesn’t sell and the listing expires.
If a home doesn’t sell and becomes an expired listing after 6 months, it’s probably not due to lack of buyers in your local market.
Rather than blaming it on the local housing market, it’s important a seller realizes that their home is listed too high $.
Every home has a price tag that is acceptable to buyers.
Sometimes it does take a house a while to sell even in a hot market.
If the home is priced correctly and prepared to sell, it will sell and not expire, period.