If you were to go to real estate school, you’d learn that the price of a home really comes down to this: what are people willing to pay for it? Many factors go into the pricing of homes, from what owners think they should get to the prices other similar homes in the area are selling for. What are some signs that your home might be overpriced?
First, consider your surroundings. If your home is listed at a much higher price that those around it, it’s probably overpriced. Real estate agents do a comparative market analysis. They look to see what homes are similar to yours, nearby, and what price they sold for in recent times. For instance, if there are comparable homes in your vicinity and they all went for, say, $120,000 to $150,000 when sold during the past year, and yours is listed at $210,000, then chances are you’re going to have a hard time selling at that higher price.
Next, if your home has been on the market for quite some time– a couple of months, for example– and no one has made an offer to buy it, it could be overpriced. If there have been offers but they’re much lower than what you expected, then the market is telling you you’re overpriced.
If there have been open houses where the public was allowed to come in and take a look but few (if any) people came, the price could definitely be the thing keeping them away. If the home is listed on the Internet but doesn’t seem to be getting much attention there, the price might be scaring people away. Price is paramount when it comes to selling homes.
Finally, does it seem like the neighbors’ homes are selling but yours is not? Maybe you priced it too high.
Ideally, you should work with an expert real estate agent like Edmonton’s Alexis Hlady. She can help you set “the right price” so that your house will get people’s attention and, hopefully, sell in a timely manner.