When you decide to sell your home, there are several mistakes you should avoid, and overpricing your
home is one of them. Here are the dangers of pricing your home too high.
1. It won’t sell:
The most obvious outcome of overpricing your home is ‘it won’t sell’. If an
apartment of same size in your building was sold for 20 Lacs recently, asking 75 Lacs for your
home is over expectation.
2. You will see low turn ups:
These days, buyers are too smart to manipulate. They do a thorough
research before making any offer and sense overpriced homes from a mile away. If buyers think
that your house is unnecessarily overpriced, and the word is spread in the market, you will find
that no one is turning up to see your home.
3. It will stale:
If your home is unsold even after months you brought it into the market, it will start
staling, and shoo away the buyers. Potential buyer might think, ‘why no one is buying this
house? Something must be wrong with it.’
4. Valuation issues:
If a potential buyer is applying for a home loan (most likely he will), your home
will undergo property valuation. If moneylenders find that your home is not worth the price you
are asking, a home loan will get rejected, which will result in scrapping the deal. and you are back
to square one!
5. Tough negotiation:
Buyers are likely to negotiate hard when they are showing interest in a
property that is unsold for months. You will see low turn up rates, low enquiries, and on top of
that, tough negotiations with scanty buyers.
The solution: Pricing your home realistically is a crucial task. Take help of a real estate advisor to find
true value of your home, so you will be able to close the deal soon with good money in your hand.