There are three signs you need to watch out for to know whether your home is overpriced.

 

If you’re putting your home on the market, it’s important that you price it correctly from the start. Overpricing it can cost you tens of thousands of dollars—not just in terms of carrying costs, but because you’ll end up chasing the market downward.

A lot of people assume a buyer will eventually make an offer for less than what they ask, but that doesn’t happen very often. Think of the TV show “Shark Tank,” where people offer a percentage of their company in exchange for an investment: Some of those companies are amazing, but their founders will still walk away without a deal because they ask for too much of an investment.

The same thing can happen to sellers in our Calgary market, so if you do overprice your home, you’ll need to adjust quickly. How can you tell if this is the case, though? Here are the three signs you should watch out for.

1. Your listing has expired. If it’s been on the market for six months or more, it’s already gone through a lot of exposure.

“Overpricing it can cost you tens of thousands of dollars.”

2. The Rule of 10. In other words, for every 10 showings you have, you should get at least one offer—if you go 10 days without a showing, your home is overpriced.

3. Feedback. People will give you feedback after a showing if your Realtor is doing a great job. Make sure you listen to it. A lot of sellers try to block this feedback out, but if buyers give you feedback without wanting to buy your home, it means they’re trying to help you. A lot of their minor complaints can be solved once the price is right. If your price is right, the only feedback you want to hear is an offer or a clarifying question.

If your home has been sitting on the market and you want it sold soon, we specialize in fixing bad listings, so give us a call and we’d be happy to help you.