Although home prices are slightly higher than usual right now, sellers will often jack up the price even further to try to squeeze every penny out of the buyer. Is money the only motivation? Not always! Here are the main reasons why sellers intentionally or unintentionally overprice their homes:
They value their own taste.
Sellers often get so caught up in how much they love their home, they forget to look at it from another person’s point of view. They believe the unique touches they’ve added throughout the house add value, while buyers might actually be turned off by these add-ons. It’s up to real estate agents to talk to their sellers and bring them back down to Earth to realize the true value of the house from the buyer’s perspective.
Sellers may have purchased their home at the height of the market begin the recession. If this is the case, they probably spent way more than the house is worth, and are now trying to make all their money back even though the price is unfair. Or, sellers could have bought the home at a fairly decent price, but then spent too much money renovating it, and now want to recoup all of their expenses. Either way, it’s not the buyer’s fault that the seller made bad financial choices in the past, so they shouldn’t have to pay for a seller’s mistake.
Too attached to the home.
What value would you place on all of your most personal and intimate memories? It’s hard to come up with a price tag because these precious memories are probably priceless to you—and that’s just how sellers feel when they get rid of a home full of so many memories. The seller could have built the home from the ground up and now become too attached to it. Or, perhaps the seller raised his family in the home and doesn’t want to let go of all of these special moments. But, sellers have to be able to separate their own personal feelings from the market value of the home.
Leaving room for negotiation.
Some sellers price their homes higher than they should because they want to leave room for a price negotiation. They believe pricing it higher than what they actually expect to get out of the house will give them a little wiggle room when buyers want to negotiate a lower price. But, this could be a big mistake depending on how high they choose to go. Buyers won’t be interested in the house if it’s priced way above what it’s worth, so it will be hard to grab their attention and get them in the door to even think about a negotiation. If sellers choose to do this, they need to be careful about going way over the home’s value.
Want more real estate advice? Talk to the professionals! Contact our team of real estate experts at Coast 2 Coast Realty who have years of experience helping buyers and sellers in the Tampa area.