Learn Your Hilton Head Plantation Home Value

Many sellers choose to ignore the market. Believing that pricing their home high initially is a good strategy. The thing is, many sellers fail to realize that pricing a home higher than it should be priced does not increase the chances of selling it for more.

Here are a few common consequences of overpricing that home sellers encounter:

Time

When you put your home on the market, you certainly want to spark interest in some potential buyers. Your home for sale should be appealing and at a price point similar or better to comparable homes in your area. When your home is priced too high, it may be ignored by buyers and placed into a “wait and see” category. You lose out on any potential business stoked by early market excitement.

If your home languished on the market, you may be forced to move the price down than your original asking price. But by that time the home has been for sale too long, buyers will become wary and wonder why the house has been on the market for so long. Some will suspect there is something wrong with your house that is affecting its ability to sell.

Negative perception

A home sitting on the market for long has the risk of getting a negative perception. The longer your home sits unsold, the more negatively it is viewed. It must be too expensive to sit for so long, or buyers will think that there must be something wrong with your property. Real estate agents working for buyers may steer them away from your property or tell them to wait for a drop in price.

When you drop your asking price you might finally see an influx of potential buyers, but only these buyers may see you as an easy target and hit you with low ball offers that can be equally upsetting and frustrating.

Appraisal problem

Even if you find a buyer willing to pay for an overpriced home, they may have difficulty getting financing. For your buyer to get a loan, the bank will need to have your home appraised. Your buyer’s appraiser will use the prices of nearby, comparable homes to help determine the price of your home.  If the appraiser determines that your price is too high, it can cause a delay in the mortgage procees, and worst, the buyer’s lenders may not approve the loan.

Exposure to potential buyers

If your home is overpriced, buyers looking in a lower price range may never even see your home’s listing. Buyers who use the Internet in their home search certainly put criteria into a search to filter properties that match their home criteria. It may seem a small thing, but when you price your home too far above the comps, you remove yourself out of these searches. Those who can afford a home at your asking price will quickly recognize that they can get better value elsewhere.

Mortgage payments

The longer your home sits on the market, the more money you pour into a property that you will not get back. With a high price, there is no negotiating up. If you fail to attract potential buyers, you may end up trying to pay two mortgages, or in the worst situation, in foreclosure.

Since we move to Hilton Head Island we have been living in Hilton Head Plantation since 1997, we have a years of experience listing and selling Hilton Head Plantation Real Estate and know how to tell a seller their correct Hilton Head Plantation home value