The market is improving, which is wonderful news for homeowners. Escalating prices give home buyers more confidence to purchase, which leads to more buyers and more competition. This type of market often causes overpricing, which can be ill-fated. The following is what overpricing your Las Vegas property might cost you.
Connection Between Home Price and Listing Timeframe
It is well documented that list price and marketing timeframe are related. Overpriced properties remain on the market longer for several reasons. First, higher price ranges have less qualified buyers. Secondly, overpricing your property makes lower-priced listings seem a better deal. Thus, competing listings may benefit from your overpricing. Lastly, potential buyers are more critical as the price increases. Your property must have obvious reasons for the higher price or home buyers will bypass it.
Longer Marketing Time Affects Sale Price
Another known pattern is that the price for which a property sells will decrease the longer it stays listed. Buyers develop a negative impression of properties that do not sell quickly. They assume that something must be wrong with the property (and not simply that it was overpriced).
Additionally, as a seller, you will usually make price reductions over time. Even if you bring it to where you should have started to begin with, the damage will have already been done. Buyers who do express interest will usually submit lower prices than they initially might have. Ultimately, your property will sell for less because you overpriced.
What Overpricing Your Las Vegas Property Might Cost You
What overpricing your Las Vegas property might cost you is both lost time and lower profit. It is that simple. Even if the real estate market is hot and listings are selling for above list price, it is never a good idea to overprice. The first few weeks of a house entering the market are the most important. This attracts the most interest, increases demand and gets you maximum value. Work with an experienced real estate agent who understands the current market and competent pricing approaches.