For the last several years, the market has been red hot here in Richmond Virginia! And homes have appreciated a lot - in many areas, a home will be listed on a Friday, with an open house on Sunday and multiple offers by the end of the open house!
But then around August or September last year, the market began to cool down! And, for many sellers who had priced their homes as if we were still in the red hot market, all of a sudden, their homes weren't selling! And, for many of these homes, the reason was simple - their home is overpriced - and, unfortunately, many sellers are not taking steps to correct this!
So, if you're one of the sellers whose home has been on the market for some time and isn't sold, how do you know if your home is overpriced? Here are 12 signs that your home may be overpriced!
Your Home Is Priced Way Above The Neighboring Homes For Sale
Hopefully, your Realtor has set you up with a link to show you what your competition is doing price wise! But if your home is priced well above the competition, buyers may be using your home as a comparison when they make offers on other homes! Solution - reduce your home's price!
The Realtor Who Gave You The Highest Price Is The One You Hired
Being the Realtor who gave the highest price to you may be a good Realtor, and your home may truly be worth what they said it was worth! But there are also Realtors who will give you the highest price just to buy your listing - and then be after you to reduce the price when it doesn't sell at their suggested price! Solution - reduce your home's price!
The Online Property Listing Isn't Getting Any Traffic
Almost all listings today are syndicated out to various websites, such as Zillow, Trulia, Realtor.com, etc. But if your listing is not getting much traffic online that is a sure sign that there is something wrong! If the pictures look good, and the write up is good, then perhaps it is your price point that is turning away online visitors! Solution - reduce your home's price!
Your Home Isn't Getting A Steady Stream of Buyer Showings
Yes, the market has cooled down, and yes, we are in the slower selling season! But the market is not dead! Buyers are still out there looking! But if you are getting few to no showings, this is a sure sign that you are overpriced! I was told early on in my career that price overcomes all objections! Solution - reduce your home's price!
Your Home Hasn't Had Any Offers, Despite Months of Marketing
Your agent has done everything to get the home sold - nice brochures, staging, professional photos, open houses, social media marketing, etc - but you still have had no offers! This is definitely a red flag! Solution - reduce your home's price!
Your Home Has Only Seen Low Ball Offers
The buyers in today's market are pretty savvy about pricing in the area! They have probably looked at many houses and know what the prices are. If your house has been on the market for a little while with no offers, the buyers may think there is something wrong with your house - and make a low ball offer! If these are the only offers you have seen, this is probably the market giving you feedback on what they think your home is worth! Solution - reduce your home's price!
There Has Only Been 1 Common Feedback Given
If the feedback given is that the house is overpriced, then this is the market giving you feedback! Solution - reduce your home's price!
Your Agent's 12 Month Listing Has Expired - And Your Home Is Still On The Market
Another red flag here! There are almost no homes in the Richmond area that take over a year to sell! Unless, they are overpriced! Solution - reduce your home's price!
Neighboring Properties For Sale Are SELLING
If your neighbor's homes are selling, but yours isn't - this is another red flag! Solution - reduce your home's price!
You or Your Agent Keep Holding Open Houses - BUT NO ONE SHOWS UP
The first open house will probably see a lot of visitors, but if you or your agent continue holding open houses and no one comes, this is another red flag! Solution - reduce your home's price!
Your Think Your Unique Home Improvements Justify The Higher Price
If you updated your home over the years with some unique renovations (a jetted tub in the middle of the bedroom because it reminded you of your honeymoon in the Poconos), some improvements & renovations may not be to a potential buyers taste! Pricing your home higher just because you put in the jetted tub may not be what your buyers want! Solution - reduce your home's price!
Pricing a home in today's market is more of an art than a science! But pricing your home too high for the market, for whatever reason, means that your home may sit on the market a longer time than it needs to. The real estate market is king - and the real estate market will tell you in many different ways if your home is priced too high! The longer a property sits on the market, the less desirable that home may become in the eyes of the buyers! Even in this cooled down market, a buyer may ask what is wrong with the house that have sat unsold! Many sellers say they want to price high to allow them to negotiate - but the first step to negotiating with a buyer is to get buyers into your home to see it! And remember, most buyers will be getting a loan, which means that the lender will want to make sure that the house appraises for whatever price the home is sold for! The appraisal will trump all!
So, if your home is listed for sale, and hasn't sold - talk to your Realtor about whether or not a price reduction is something that should be done! Make sure you look at how your property was priced - and whether or not there is new competition that has now made your home overpriced!
Thinking of selling your home? Have questions on the real estate market here in Richmond? Feel free to call me at 804-869-1191 or email me at BReagan2@gmail.com - I would be happy to help!