Ok, you’ve decided that it’s time sell your house. For whatever reason; upgrade, downsize, relocate, you get the picture. Now, everyone wants the most money for their house, right? And, many homeowners, including you, believe for whatever reason that their house is worth more than the one down the street, right? Be honest with yourself! Homeowners should be cautioned that overpricing a house for sale can end up costing them money, literally thousands!
Now, keep in mind that you’ve already decided that you’re going to sell and move on. I have 9 simple reasons why pricing your home too high can cost you money. So, let’s play Real Estate!
Reason #1: And, this is a hard one! Interest/mortgage rates might go up! We don’t carry the crystal ball and while you’re waiting for you house to sell, interest rates creep up costing you more on your new home! This also impacts potential buyers ceiling price causing them to shop for a different, less expensive house.
Reason #2: When you finally sell (everything sells eventually!), your new home may cost you more or…
Reason #3: The market swings and your house is now worth less taking even longer to sell or it expires. Either way, you lose out.
Reason #4: You lose speculation time. Pricing too high could put you outside the sight of prospective buyers. Once your house sits long enough on the market and your REALTORâ talks you into reducing the price, you still may sit waiting as the buyers for your type/style of house have already bought something else!
Reason #5: Let’s say that you had to move; transfer. Now, your house sits vacant. You still have to pay taxes and utilities until it sells. Or…Reason#6: You have two homes and double the mortgage payments! Ouch! Now, out of frustration, you drop the price and “fire sale” it to try and “save” money. Costing you more!
Reason #7: Tax advantage…I’m not an accountant so I suggest you discuss this one with him/her. But, let’s say for argument sake that you don’t sell it and you’ve moved on. Now what? You end up renting it in hopes to cover your costs. Where does that put you with the tax man? Repairs after tenants move out? Money, money, money!
Reason #8: Your house gets lost in the shuffle! You start too high and chase the market down. Now it’s finally priced where it should have been priced in the first place. But, it still doesn’t sell! Why? It’s been on the market too long. So long in fact, that people wonder what is wrong with it and avoid it. So, now you “fire sale” it to get rid of it! You lose out on thousands!
Reason #9: You end doing needed repairs (the roof finally started to leak!) and end up not recouping the costs in the final sale.
It’s all common sense really! The Real Estate Professional you choose should be able to explain where the current market for your area is and help you price your house right. If I can be of any help or you would like to discuss this matter further, send me an email with your contact information and I’d be happy to give you a call! If you live in the Central Vancouver Island area and would like to discuss this or listing your house, call me directly at 250-751-4902!