While real estate sales have slowed a bit, it’s still decidedly a seller’s market, and as always, the Tampa real estate market continues to be hot with a strong ROI.
The temptation is to price your property sky-high to take advantage of a strong market. Overpricing a home, however, is a common mistake by homeowners. While it seems like a logical tactic in a seller’s market, this can backfire for many reasons.
For one, you risk your property not selling quickly and then having to do price reductions. Days on the market matter! You have the upper hand when you’re first listing, but the dynamic switches when your home spends a lot of days on the market without selling. Buyers may wonder if there’s something wrong with the home if it’s just sitting there with no offers. The longer your house is on the market, the more you will deal with low-ball offers and having to sell under the asking price, which nobody likes (even your neighbors, since it can devalue their property, too).
While probably unlikely this year, also consider that the market could fluctuate while your home is for sale over a long period of time—and it might not be in your favor.
Something else to think about: the appraisal could also come in low, which means the lender may not finance potential buyers for the amount they need for their mortgage, and they’ll have to come in with more cash than anticipated.
Overpricing can also scare off legitimate buyers in general, as well as exclude your listing from their searches since your asking price would theoretically be above where they’d be searching. They may just look at other places in the area and go in that direction.
I recommend doing it right the first time. Pricing your home accurately will attract more offers and has the potential to put buyers in a competitive situation, which is a much better position for you as the seller.
Let me be your sixth sense and guide you in your buying or selling experience here in the Tampa area. I live and breathe the real estate market and know Tampa inside and out; I also know what sells and what doesn’t! I promise I will steer you in the right direction. Call me today, and we’ll create an effective buying or selling strategy to get you into your new home or get your home sold at the best price.