How to lose money by overpricing your home

The absolute worst mistake you can make when selling your home is drum roll please to overprice your home

Remember the days when you'd be like “hey, I got a house for sale” and you’d have like 30 offers ready to go?

All you had to do was whisper it into the market.

When things were flying off the shelf, did you know that one in five homes did not sell?

Crazy to think about, right? And the biggest issue that we saw was overpricing. People priced way too high. So let's say your home is worth $750,000 and you've priced it at $850,000. Well what buyers do is they compare it to all the other homes that are listed at $850k.

Buyers are ready to pull the trigger. They've been looking for a while so they know exactly what to look for and what their $850k will get them, but then when they see yours they're like, “wait a minute where’s the backyard? What is this oven brand Sumsong I've never heard of?”

They know what they're getting and so what happens is they decide to not go to your home. They're like, “this is overpriced!”

Then they start thinking that there's something going on with the seller. They think that the seller expectations are too high, and they don't even want to put in an offer.

So now a month has gone by and you're forced to reduce the price because you're just not getting any bites. No worries? Well the problem with that now is that it's been on the market for a month already. So what goes through buyers minds’ is, “is there something wrong with this house? Maybe it's haunted?”

So then your realtor has to go and put a “not haunted” sign at the front of the house. And another month goes by and then another one and now you've been on the market for three months and people start thinking, “what's wrong with this house? There's gotta be something wrong with it. I’m not going to touch it.”

And then finally finally in month four you get an offer and guess what? It is way lower than you thought. So now that $750k that you could have had in week one is now $600k four months later because you didn't price it properly.

Pricing is so important. You can sell anything with the right price. You could literally take a house, put it on railroad tracks, and if you price that right you bet your butt that's gonna sell.

So price your home properly and get the right price, sooner.