What You Need to Know About Overpricing When Selling Your Home

In selling your home, the first step that you will have to take is ensuring that you set up an asking price.

Of course, this is easier said than done due to the fact that it is a delicate balancing act between getting a number of offers while also receiving the best price for your home.

While market experts might recommend this number to be equivalent to ‘fair market value’, this doesn’t, in most cases, mean the right asking price for your home. Alternatively, it’s not such a good idea to overprice your home as this might turn out to work in your detriment in the future.

You have to ask yourself the question as to whether you want to sell your home quickly or want to make as much money as possible. If it’s the latter, you’d want to be careful not to overprice your home in any case but not forgetting to check as to whether your agent’s assessment of its value is fair.

That said, there are a number of factors that can cause you to unnecessarily overprice your home:

#1: If you need money badly

#2: If you have made a number of upgrades, most of your investment will be recovered. However, don’t expect to get back 100% in return.

#3: The seller doesn’t have data (which would serve as market value) to back his asking price

#4: The seller wants bargaining room, which is usually 1-3 percent higher than the accepted market value

#5: The original purchase price was too high