Choosing to overprice your beach home often sounds like a strategy to get more money from the property. Glenn Phillips, CEO of Beach Homes Realty, discusses why overpricing your beach home will backfire.
- “What I have in it.” When you bought your beach home, you didn’t ask the seller how much they bought it for. Similarly to stocks, you can’t sell a house for more than what the market says its value is.
- “What I ‘need’.” The market doesn’t care about what you plan to use the money for. Sellers often try to sell a house to cover other expenses, but buyers don’t care about that.
- “I just ‘feel’ it is worth this.” Studies show that we value our stuff over other people’s stuff. Sellers often try to justify their pricing because of a ‘feeling.’ However, this doesn’t reflect the market.
- “The neighbor’s house sold for…” Sometimes, sellers price their homes based on other home prices. Instead, get a comparable market analysis from an expert beach agent. This ensures that your home’s pricing is accurate to the current market.
- “The house nearby is listed for…” Similarly, nearby listed homes haven’t sold, meaning they’re probably overpriced.
- “If I can get this much, then I’ll sell.” This statement essentially means you’re buying a lottery ticket. When using this strategy, the buyer might perceive you as not being a serious seller. In fact, doing this devalues your home when you do decide to get serious about selling.
These six ‘reasons’ to overprice your home often lead to headaches and trouble. The maximum return on investment for your home is selling it in a short period of time for the maximum the market allows. Visit beach-homes.com to connect with expert beach agents ready to help get you the most for your home.