Selling a house can be challenging, especially if for sellers that are new to the real estate world and have never before attempted to list a property. These sellers may be tempted to price a home high and try to get as much for it as they can. Unfortunately, there are many problems that can result from overpriced homes, for both the seller and the general market.
Those that are selling a home and list it too high will find that it may linger on the market, which drags out the selling process. The longer a house is for sale, the more time must be invested with showings, cleanings, and negotiations with potential buyers. This also means that a home will lose out on the newness factor that often helps property on the market get sold.
Less Chance Of A High Final Sell Price
Overpriced homes do not generate as much interest in the market as similar homes that are priced reasonably. For this reason, they tend to stay on the market longer. The longer a home is on the market, the further down the price will go. This means that people that price their home too high initially will often wind up getting below market value because the house has been listed for such a long period of time.
Impact On Local Markets
If several houses in a single area are listed for sale for a price that is too high, it may cause issues for the housing market in a given region. The combined effect of many overpriced homes can lead to the creation of a bubble in that market. While overpriced homes may lead to more profits up front, they are not good for the future and long-term sustainability of the market. After buying a new home for a high price based on the profits they made from the sale of an overpriced house, some sellers may find that the next place they move to goes down in value. When this happens on a widespread basis, it has serious economic repercussions.
Pricing a home can be a tricky challenge. For those that are selling a place in the Virginia or West Virginia area, the seasoned team at Old Dominion Realty is readily available to help. The experts at Old Dominion will keep any property from becoming one of the overpriced homes in its market.