A home is something we all place great value in, for both financial and emotional reasons.
It’s one of our largest investments. It’s where we create precious memories. It’s the place that we can truly call our own.
Unfortunately, this sentiment can make it hard to sell a Knoxville. Sellers can often be blinded by their emotions, which can cause them to not see the reality when it comes to selling their home.
One of the largest struggles Knoxville sellers have is with price. Here are 4 excuses sellers give for overpricing their home and why you should avoid them.
Many sellers will reason that if they have time to see what happens with selling their home, they might as well price it however they want.
The thing is, though, you’re either ready to sell your home or you’re not. It’s great that you feel like you may have the time to see what happens, but if you’re really serious about selling, you’re going to take the process seriously. There is no use in wasting your time, an agent’s time, or a buyer’s time if you’re not serious about selling.
When your home is for sale, the more time your home spends on the market, the more buyers will wonder about your home. If your home has been on the market for a long time, buyers will wonder what is wrong with it. They may also wonder how much of a deal they can.
Why you should avoid this tactic: Time on the market isn’t good for you and it’s not good for your bottom line. If you’re not ready to sell your home, that’s fine. When it does come time to sell your home, you’ll be ready to price it competitively.
Many sellers always reason that they can always lower the price later on. You absolutely can lower the price on your home. It’s your home, you can price it as you want.
But, have you ever considered that multiple price reductions aren’t a good thing?
Your home will get the most attention when it first hits the market. If your home is overpriced, you may get a showing or two. But, buyers will see that your home is overpriced and pass it up. So, your home will continue to sit on the market, you’ll be forced to reduce the price.
Why you should avoid this tactic: When a home is overpriced, it will typically take multiple price reductions before it gets an offer. If you price your home competitively from the beginning, you’ll get a better initial offer.
All sellers are attached to their home. When you’ve spent a lot of time and money in a place, you form an attachment. This can cause many sellers to inflate what they felt their home is worth.
The problem with this is your home is only worth what a buyer is willing to pay for it. If your home is overpriced, a buyer is going to pass up looking at it, let along matching your over-inflated price. When a home is overpriced, a buyer will see that you’re unrealistic.
Why you should avoid this: Emotions cannot set the price for you home. the real estate market always has a way of balancing out overpriced homes. Buyers will be unwilling to write an offer. Or, your home will not properly appraise if a buyer is willing to overpay.
Finally, the last pricing issue many sellers struggle with is money they’ve spent on repairs. You can spend $20,000 updating your kitchen. But, that doesn’t mean that your price will increase by that amount.
It’s important to know when you do home renovations, you won’t see the full investment back. Certain investments have a better return on investment than others. Things like improving your kitchen, bathrooms, and outdoor space are all things that see a good return on investment.
Before you go spend money on renovations, it’s important to see what kind of return those investments have, since you won’t get your full investment back.
Why you should avoid this: It’s important that as a seller you have an understanding of what items get a good return on investment and make those changes at your own risk. When you overprice your home due to renovations, it will just sit there and it will hurt your home’s value.
Are you thinking about selling your Knoxville home this year? Please let us know if there is anyway that Knoxville Home Team can assist you. Rick can be reached at 865-696-9002 or via email at [email protected]. Kati can be reached at [email protected] or at 865-696-1888.
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