How Do You Know if Your Home Is Overpriced?

Hammond Property Group Video Blog with Brian Hammond

How do you know if you need to adjust the list price of your home? You'll know if you fall into one of these three categories.

If you're selling your home, how do you know when the right time is to adjust your list price?

Let's assume you have interviewed and hired a solid agent who broadcasts and markets your home to the buying public. If the home is still not selling, what should you do? Typically, when you list a home, one of three things can happen.

The first is that within a reasonable time frame after listing, you have active showings and receive offers. This is obviously the most desirable outcome when putting your home on the market.

The second thing that can happen is you list a home and still have showings, but don't receive any offers. According to the National Association of Realtors, if you find yourself in this scenario, there's a real possibility that your home is overpriced. Usually, the NAR says, you are overpriced by 3% to 5%.

The third possible outcome is that you receive neither offers nor showings after listing your home. In this case, it's clear that you have a price issue, especially if we're assuming that your home is being marketed correctly. Again, according to the NAR, this scenario usually means that the property is priced 5% to 10% too high.

If you don't receive showings or offers, it may be time for a price adjustment.

So what do you do?

If you fall in the second or third category, you definitely need to reassess the comparable properties in the area, reassess your goals, and reassess where you can be more competitive in the market to get your home sold. Of course, the best way to handle any of these situations successfully is to hire a powerful agent from the beginning.

Your agent should speak truthfully, show you the facts of what's going on in the market, and price your property correctly from the beginning. That way, you'll end up in the first category where your house has lots of showings and you receive lots of offers.

If you or anyone you know is planning to sell property in the future, it'd be my pleasure to assist you in getting into that first category. Just give me a call or send me an email and let's start a conversation soon.