3 Pitfalls of Pricing Your Fargo-Moorhead Home Too High

A house is one of your most cherished possessions. It's not just wood and stone and shingles; it's your home, a place filled with moments that matter and memories that make up a life.

Understandably, this value can unintentionally bias your opinion when setting a selling price for your home. Still, it's vital to keep your feelings in check on this one. Why?

Because overpricing your home is one of the top reasons homes fail to sell.

Here are three pitfalls to avoid when pricing your home and what you can do to ensure you're on the right track and not sabotaging your home sale.

1. Beware the Zillow Estimate

Trying to match your Zillow estimate (Zestimate) can be a mistake. Zillow is only an algorithm and not a professional real estate agent who know the community or the uniqueness of the Fargo-Moorhead area.

When it comes to Zillow, it boils down to what we mentioned earlier in "The Truth about Zillow Estimates: 5 Essential Dos and Don'ts," 

 "Yes, Zestimates can give you a general idea, but it should be only ONE data point in determining a buying or selling price, not your sole data source. Banks and lenders also recognize that Zestimates are only as good as the data behind them, which is why lending agencies do not use them to estimate a property's value for a mortgage and rely on an official appraisal and a comparative market analysis (CMA)."

What to do instead: Hire an experienced agent who understands the current market value as well as the area and can help you set a price that's best for all. Better still, hire an agent who understands the process, including appraisals and inspections, and who builds a career on character.

2. Beware the "Waiting Them Out" Strategy

Many sellers think there's wisdom in putting their house on the market at a high price, so they have negotiating power or wiggle room to come down later if need be.

However, time isn't always on your side.

The longer your home sits on the market (until you lower your price), the more your listing can become stale. What's more, the longer your home sits, the more it can negatively affect the perception of potential buyers.

Most buyers want to know the price of the home and how long it's been for sale. The combination of a high price and a long time on the market can quickly leave many assuming there's something wrong with the property.

What to do instead: Put time on your side. You have the greatest potential to attract a buyer within the first 30 days in a buyer's market. In a seller's market, only seven days. So, rely on your agent to review comparable houses and work with you to set the best price.

3. Beware the Unforeseen

As a seller, it's easy to think that the higher you list your home, the more money you'll walk away with, but beware of the unforeseen consequences of this strategy.

For one thing, buyers don't need to be coached on lowball offers. They're experts at them, which could mean you ultimately sell your home for less or lose credibility.

Another example is that overpriced homes can often run into appraisal problems when they're not comparable to other homes, leading to a lender who may not loan on the property.

Lastly, overpriced homes often have little to no showings. There are a couple of reasons for this. For one thing, buying agents want to do what's best for their clients, so they won't show them overpriced listings. Secondly, when agents search online for potential homes, they use criteria to weed out unwanted homes. If you price yourself out of their criteria, your home will most likely not even appear on their list.

What to do instead: Trust your agent but get informed yourself. Visit open houses and understand what other comparable homes look like and their selling price.

Ready to rely on the help of Christians Home Crew to avoid the pitfalls in your next real estate journey? Reach out today!

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