Is Your Home Overpriced?
Sellers, look out for these signs that your listing is priced too high.
If you’re in the process of selling your home in an area like Raleigh or Charlotte, chances are you went into the experience feeling quite confident. After all, these areas are experiencing a prolonged and very strong seller’s market, with inventory still extremely low and interest in moving to these areas skyrocketing.
There’s no denying that sellers have a strong upper hand in real estate transactions in growing cities like these — but that doesn't mean that pricing strategy can go out the window. Stay on the lookout for these three signs that your home is overpriced.
Your Home’s Price Far Exceeds That of Nearby Homes for Sale
When determining the appropriate price of a home, it’s common to look at “comps,” or other homes in the area with similar features. If you browse a listing website and notice that your three-bed, two-bath home is priced much higher than the three-bed, two-bath home down the street, it’s time to take a step back and reevaluate your strategy.
In some cases, a higher price may be warranted because of upgrades or differences in overall quality — perhaps your home is renovated with quartz countertops and luxury vinyl flooring while theirs is full of linoleum. It’s possible that two homes of the same size and age do have different values — but it’s often not the case. Taking an objective eye to your home and its price compared to similar surrounding homes can help you determine the ideal pricing for your listing.
Your Home Has Been on the Market Much Longer Than Your Local Average
Homes generally sit on the market for a very short time in Raleigh and Charlotte: averages are 10 and 13 days, respectively. So if you listed your home more than two weeks ago and there’s still no buyer’s contract in sight, it may be time to reevaluate your pricing.
You’ve Had Very Few Showings and Offers
Due to the competitive nature of the Raleigh and Charlotte real estate markets, most new listings garner the attention of hopeful buyers in the area very quickly. Homes in good condition may see dozens of showings in the very first weekend after the listing goes live, and many of them vet multiple offers in the first week as well. If that’s not the case for your listing, it may be overpriced.
Why Does It Matter?
Many sellers hold the common misconception that there’s no harm in listing your home too high; if it doesn't sell, you can always lower the price, right? Unfortunately, that’s not generally how it works.
Especially in competitive markets, homes sitting on the market for longer than a couple of weeks are often seen as a red flag by potential buyers. Once you’ve decided to lower your price, it may be too late to avoid the stigma that can come with an old listing. It’s easy for buyers to assume there might be something wrong with the home, even if it is in their price range. In many cases, this strategy results in the sale of the home earning you less than it could have if you’d priced it accurately in the first place.
It’s easy to get wrapped up in the emotions we associate with our own homes and overestimate how much they are worth. Ideally, choosing the right real estate agent will help you foresee and avoid issues associated with pricing your home. A trusted realtor can strategize about your home’s value and list it at an asking price that will generate plenty of interest while also earning you as much as possible on the sale of your home.
As long as you’re strategic in the sale of your home, selling in Raleigh or Charlotte right now can mean significant financial gains. Why not invest in your true dream home? Building with Atmos means you finally get a chance to create a home prioritizing your lifestyle, tastes, and needs. Get started building your custom home today!
