The Damaging Effects Of Overpricing Your Jersey Shore Home

When it comes to selling your Jersey Shore home, pricing your home right to sell is important. Every homeowner wants top dollar for their home, and as real estate agents we want the same for our sellers. If your home is priced higher than the current market value in your area it could have damaging effects.
As a seller you have the right to list your home at the price you want. However, buyers in the market are looking for homes that are at fair market value. Overpricing your home can quickly backfire. Here a few reasons why:
Scaring Buyers
A home that is overpriced can easily scare off homebuyers even before they get a chance to view it. Many buyers are currently working with real estate agents, and an experienced agent can quickly tell if a home is overpriced. As a result, the agent will steer the buyers away from your home.
Offers
A home that is not priced at fair market value will discourage prospective homebuyers from putting in an offer. Often we see buyers not wanting to waste their time when it comes to overpriced homes. They choose to devote their time looking at homes they feel are a good value.
Appraisals
A majority of buyers choose to finance a home and are not paying cash; therefore the home must be appraised by the lender. If your home appraises lower than the purchase price the sale may fall through. Many lenders actually penalize a buyer with increased interest rates or require a larger down payment. Some lenders choose to deny the loan. Don’t risk losing a sale!
Days On Market
An overpriced home spends more days on the market. The ideal time for a home to sell is within the first few months it is on the market. The longer your home sits on the market the more you run the risk of your listing expiring, which can negatively impact the home. Buyers ask routinely how long a home has been on the market, and if it’s an extended period of time they wonder what is wrong with the home. These buyers then tend to feel as if they can offer a lot less on the home and negotiate more due to its longevity on the market.
Lower Profits
Many reports show that if a home is overpriced it ends up selling for a lot less than similar homes further down the road.
If you are looking to sell a home along the Jersey Shore let the Ferzoco Group help. We would be happy to assist you with finding a mortgage lender who will work with you to help you determine what options are best for you.
The Ferzoco Group are experts in real estate from Ocean City to Cape May. If you are looking to buy a new home or sell your existing home, we’d love to hear how we can help you reach your real estate goals. Our job is to make your tomorrow better than today. Contact us today via email or give us a call at 609-264-6762