When selling your home it’s tempting to overprice your property. Of course selling your home for the most money is the goal of most people. However, what we have found is much like a baseball player who swings for the fences you are more likely to strike out than hit a home run by significantly overpricing your house.

A great example of what can happen to a seller that overprices their home recently played out in our neighborhood.

Last summer we were hired to help a couple sell their home. We suggested they price their home at market value, which was $485,000. After being on the market for 3 days we received 2 offers for the home and settled on a price of $486,500. We were also able to negotiate a free 2 month leaseback for the sellers to stay in their home which allowed them not to move twice. The leaseback had a value of $5,000 ($2,500 x 2 months). Total value to the sellers was $491,500.

Around the same time another person had contacted us about helping him sell his home. His home was larger but very similar to the first home we sold and it had a media room and a private lot. When we talked with that seller we recommended a list price of $510,000, which was the market value.

That seller also talked with another Realtor who recommended a price of $535,000. The #1 mistake you can make when selling your home is hiring your listing agent based on who tells you your home is worth the most money but that’s what this seller did.

In the end that home was vacant and on the market for 6 months before finally selling for $500,000 while also paying $3,000 of the buyer’s closing costs. Having the home vacant and on the market for 6 months also cost the owner $18,000 in mortgage, tax, insurance, utility and landscaping payments. Total value to the seller after subtracting $18,000 and $3,000 was $479,000. That’s a loss of $31,000 compared the market price of $510,000.

When selling your home you have to look at the total picture. In this case the home that was worth $485,000 sold for an effective price of $491,500 while the home that was worth $510,000 sold for an effective price of $479,000. The seller who sold his home for a higher sales price wound up with less money in his pocket.

There are different strategies you can take when selling your home. On a rare occasion overpricing your home might make sense but only as part of a well thought out marketing strategy. When you are ready to talk about a strategy for your home call/text me directly at 512-791-7473 or shoot me an email at eric@koparealestate.com.

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