Overpricing your home for sale in Kitchener or Waterloo is not only a promise for headaches down the road but can actually contribute selling your home below market value. One of the most, if not the most crucial factors contributing to the successful sale of any property is – PRICE. If priced correctly, your Kitchener-Waterloo home stands the best chance of attracting potential buyers during its first few weeks on the market. This will eventually lead to your home selling at the price that it’s worth.
Consider the factors we have outlined below and avoid them at all costs. If you can avoid these factors you will prevent the disappointment, financial loss and stress that can accompany an overpriced home that has gone stale.
Factors That Lead to Overpricing Your Home
Poorly Executed Comparative Market Analysis (CMA)
If you are a homeowner wanting to put your house on the market, there are several things to keep in mind when a professional Realtor presents you with a Comparative Market Analysis. For starters, CMAs will vary from agent to agent and the content of the CMA will differ in depth and quality. Additionally, a CMA is by its very nature, a tool used by some agents to convince you to hire him or her to list your home by essentially telling you what you want to hear.
To find out what should be included in a quality CMA, read out our article here.
Misinterpreted Sentimental Value
One problem homeowners often run into (and sometimes realtors) is the idea that the emotional value and attachment felt by the homeowner can be transferred into a monetary one. Bob Villa touches on this point in his blog post, 12 Reasons Why Your House Isn’t Selling. As Bob notes,“…If you’re not emotionally ready to pull up stakes, then hold off on listing your home.”
For Sale By Owner
A homeowner who starts out hoping to save some money might also run into the dangers of overpricing when trying to sell their home. This is because they do not have the expertise and professionalism of an experienced Real Estate Agent. In her article Why For-Sale-By-Owner Sales Fail, Michele Lerner lists the disadvantages of selling your own home. Some of the disadvantages Michele suggests include: the limited access to current reliable market information available to the general public; the inability to view the homeowner’s property objectively; and the lack of professional experience in negotiating real estate contracts as
Unnecessary or Expensive Renovations
Determining the value that a renovation or upgrade will add to a home is a complicated and layered issue and should be taken into consideration when deciding to perform any renovations. Attempting to inflate your asking price to make up for a renovation that added no real value to your home will lead to disappointment and worse, financial ruin. We suggest that you read this article in the Globe and Mail that includes renovation recommendations from our favourite Real Estate Lawyer, Mark Weisleder: Six Renovations That Don’t Add Value to Your Home. If you are considering making any major renovations for the purpose of increasing your home’s value, check with your Realtor first to be sure that your efforts will result in a financial gain rather than loss for you, when it’s time to sell.
Plans for Bargaining
Homeowners wanting to sell their house in Waterloo Ontario who believe that they can overprice their homes at the beginning with plans of lowering it later will be met with disappointment. Interest and activity surrounding the listing of a home burns out after a short period of time. By the time your home has been listed for a few weeks, then you decide to lower your price, your most suitable potential buyers have already overlooked your home based on the inflated price. The real estate market has a low tolerance for over-priced homes. Don’t make the mistake of pricing your home for sale too high yourself, or allowing a fast-talking Real Estate Agent to promise you more than the market can bear. You will be the loser in the end.
Overpricing to Make Up for Overpaying
Another factor that can contribute to the overpricing of a house for sale in Kitchener-Waterloo is when a homeowner bought the home for more than its market value and then attempts to recover their loss. Whatever the reason, a poor investment, inexperienced Realtor or no Realtor at all – the fact of the matter is that overpricing your home is one of the worst home-selling mistakes you can make. If it’s really important to you to move right now, you would be better served to cut your losses and buy smarter the second time around.
Finding the right price when wanting to sell your house in Kitchener-Waterloo is no easy task and should never be taken lightly. Trusted professionals, like the agents we have as part of The Mark Maurer Team are here to protect your interests and ensure the best possible deal can be made for both the home owner and the home buyer.
To learn how to price your home right, watch my video below:
Find out how I’ve helped more than 2,000 families buy and sell homes in Kitchener-Waterloo by getting a copy of my free eBook here. Also for great real estate videos you won’t find anywhere else, subscribe to my YouTube channel. I love to share my expert knowledge so if you have any real estate questions feel free to call me at 310-SOLD or email me at firstname.lastname@example.org.