5 Things to Expect if You Overprice Your Home For Sale

Overpriced home for sale with beautiful wrap around porch

Even in a seller’s market, you can still push the price of your home to its glass-ceiling limit. In rare cases, a home may sell for higher than the listing price, but most of the time homes will sell near what the value is appraised for.

An experienced real estate agent knows the ebb and flow of the market and can accurately estimate how a home could be priced. Below are some things sellers can expect if they overprice their home for sale along with motivations for listing their properties at a high price.

828 Real Estate is here to help you sell or buy a home. Let us help you price your home for sale.

Why Do Sellers Overprice Their Homes?

There are a few general reasons why sellers may overprice their homes for sale. Sometimes sellers may not completely understand the current real estate market.

Some other reasons why sellers may overprice their homes include:

What to Expect if You Overprice Your Home

If you insist on listing an overpriced home, you can expect a good chance of the house not getting many views or showings.

Consider this: You’re looking through homes on a listing website and see a price that’s about 20 percent higher than what you’re able to pay. What would you do?

Most likely, you would pass on to other homes. You probably would not even see the house because your price settings were not that high!

If you decide to overprice your home, expect these 5 things to happen.

#1: The Listing May Expire on the Market Unsold

Put bluntly, if you overprice your home, expect it not to sell – quickly, at least. Overpriced listings may expire on the market unsold which could be a bad thing if you are in a hurry to sell or need to sell your home in order to buy a new one.

If your Multiple Listing Service (MLS) listing expires, your agent will hide your listing for viewers.

Your listing agreement will also end the agent’s obligation to help you sell your home. (Not to worry, there are things you can do to reaffirm the contract.)

Real Estate Listing Agreements: What to Know Before You Sign

#2: You May End Up Making Less

If you overprice your home it will not most likely sell for that price. You actually may end up making less!

Real estate agents work hard to get home listed on the market. If a property does not sell there is a good chance you will need to pay agent fees anyways.

Putting your home on the market for the proper price on the first go-around will make for a smoother transaction process.

#3: The Home Might Not Appraise Well

If you list your home above its appraisal value you might be in trouble when it comes time to wrap up the home purchase agreement.

Closing a property is a more straightforward process for both you and the buyer if the home is priced correctly the first time.

If you’re trying to sell your home 20 percent over appraisal value, you will be disappointed when the price needs to come down because of an appraisal gap.

What is a Home Appraisal and Why Do I Need One?

#4: Buyers Having More Leverage to Negotiate

If you overprice your listing, you will get fewer offers. Thus, any offer will look enticing and buyers have more leverage to negotiate.

There is a chance a buyer will send a lowball offer knowing that you may not have many offers to consider.

A home that’s priced competitively will encourage good offers.

#5: Your Neighbor’s Home is Selling Quicker

If your neighbors’ homes are selling and while your home remains on the market know that you are making the competition look better than you!

Competitively set prices get the home sale. You are not because the property is priced too high.

The buyer may think, “Both homes are comparable in placement, land, exterior, and interior, but Seller A’s home is priced at 20
percent higher than Seller B’s. I will give an offer on the cheaper home.”

How to Avoid Overpricing Your Home

You can avoid overpricing your home by contacting a real estate agent in your area. At 828 Real Estate, we specialize in helping you navigate the fluctuating housing market and set the price of your home accordingly.

Our real estate agents know what it takes to sell a home in the High Country of North Carolina. We desire the best for our clients – reoccurring customers and new friends. Contact us today.

About the Author

Born and raised in the foothills of the Blue Ridge mountains, I am the son of a beekeeper and landscaper and am someone who admires all the outdoor opportunities the High country has to offer. 

I graduated from Appalachian State University in 2015 with a major in Sustainable Development and a minor in Business. I enjoy hiking, kayaking, music, fitness, and motorcycles. I left the area after school to work all around the country in construction, sales, and commercial and residential property inspections. I recently felt the call to return to this beautiful place and I am proud to call it home now. My positive outlook and drive to see things through will be an invaluable resource for anyone looking for help in the world of real estate. I look forward to making new connections and lasting relationships based on a dedicated work ethic. I am here to cater to your specific buying/selling needs here in this unique place. I am excited to help you realize the dream of having your own slice of paradise here in the High Country.