Dangers of an Overpriced Home

Posted in Selling by Sandy Dodge

Image source: Shutterstock

When it comes time to sell your home, determining its exact value can be a challenge. Naturally, homeowners want to get the most value for their home. However, if it hits the market at too high a price, it could cause serious complications in the selling process.

 

Attracting the wrong buyers

An overpriced home creates a kind of seller’s limbo that draws the attention of the wrong buyers, which is a surefire way to start your selling process off on the wrong foot.

A vast majority of homebuyers begin their home search online, especially during these days of social distancing amidst the COVID-19 pandemic. If your home is overpriced in comparison to other listings in your area, it won’t appear in their search results. In this way, an overpriced home is blind to its intended buyers and actually drives traffic to nearby listings that are more accurately priced.

An overpriced home can’t compete with listings in a more expensive bracket. Buyers know what they want, and they know what to expect in their price range. When they notice a home is missing the square footage, features, and amenities typically found in others at the same price, they will quickly lose interest.

 

Fewer showings / virtual tours

Showings—both physical and virtual—play a significant role in the sale of your home. They give buyers a first-hand look and provide them the opportunity to ask questions and gather more information. Selling your home is a numbers game. The more showings scheduled at your listing, the more potential buyers you have. The more potential buyers, the greater chance of an offer.

Your agent knows that showings are critical to capturing buyer interest. But if the home is overpriced, they will have difficulty attracting attention to your home. This can slow the entire home selling process, leaving both the seller and agent feeling frustrated.

 

Expired shelf life

Think of the home you’re selling as a fresh tomato. Off the vine (newly listed), it is fresh and attractive, appealing to everyone in the market and standing out amongst the other tomatoes. As time goes on, no one buys the tomato and it begins to overripen and wither, losing its appeal. This is what happens to an overpriced home in the minds of buyers.

New listings attract the most attention—that’s when buyer interest is highest. The longer your home is on the market, the less appealing it becomes. At a certain point, sellers are forced to lower the price. However, this lowered price won’t have the same impact as hitting the market correctly priced the first time. Once price drops begin, they can continue, which creates the risk of selling the home for less than what it is worth.

Lastly, the longer your home is on the market, the more expenses you incur. Mortgage payments, utilities costs and seller’s fees will continue to pile up, making it harder to recover from these costs when your home does eventually sell.

 

Post-sale complications

Let’s say you do find a buyer at the overpriced cost. During closing, the lender will order an appraisal of your home, and if the appraiser finds that the market value of the home is less than the selling price, they could potentially deny financing.
Talk to your Windermere agent about how to price your home correctly to avoid these pitfalls of overpricing. Knowing your home’s worth will set you up for success when it comes time to hit the market.

Posted on September 18, 2020 at 10:55 am
Renuka Getchell | Category: Real Estate News, Renuka's Residential Report | Tagged , , , ,

Patio Upgrades to Finish Summer Strong

Posted in Living by Sandy Dodge

Image source: Shutterstock

Many homeowners have taken this extra time at home as an opportunity to retreat to their backyards and patios, turning their space into their own personal oasis. Here are some ways you can upgrade your outdoor space to make the most of the remaining days of summer.

 

Add color 

 

Add decorative throw pillows to your outdoor furniture to complement your garden’s color palette and bring some added comfort for you and your guests. Brightly colored patio umbrellas make a statement while protecting you from the sun and other outdoor elements.

In addition to having colorful flowers in your garden, another great way to add a little pizzazz to your backyard is through colored pots and planting boxes that enhance the surrounding decor.

 

Decorative lights 

 

Outdoor lighting can transform your outdoor space and set the perfect mood for those late summer nights.

LED lights are a very popular option for patio lighting, using up to ninety percent less energy than incandescent varieties. Strings of twinkle lights bring a magical nighttime quality to your backyard, creating the perfect ambience for those summer evenings under the stars. Installing light fixtures around eating areas and your landscaping will give these spaces new life during evenings outdoors.

Upgrade your BBQ 

 

The barbecue is the focal point of summer cookouts. Any time the grill gets fired up, classic summertime dishes like burgers and ribs come to my mind. However, there are simple upgrades you can make to your barbecue that give you even more options to maximize outdoor meals.

Pizza stones are perfect for making evenly cooked, delicious pizzas on the grill. They also produce a consistent heating surface for baked goods and desserts. Griddles do wonders for barbecues, allowing you to cook foods that would normally fall through the grates, like vegetables and shellfish.

 

Fire pit 

Fire pits are the modern-day conversation pit, providing the perfect spot to gather with friends and family – even during these days of social distancing. Commonly used building materials include brick, landscape blocks, stone, or cinder blocks. Traditional fire pits are best accentuated with circular seating to gather around the fire, while more modern styles like fire troughs best allow for taking in surrounding views. Natural gas fire pits offer a low-maintenance substitute to the wood-burning variety, igniting fires at the flip of a switch with easy control over the flame’s intensity.

Whichever fire pit you choose, be sure to consult local guidelines and regulations, and keep an extinguisher nearby to squash any rogue flames. If fire pits are not allowed in your area, consider safer options like flameless candles.

 

With more time being spent at home than ever before, there is plenty of opportunity to make the most of the home stretch of summer. We hope we’ve inspired you with some ways you can get creative with your slice of outdoor paradise.

Posted on September 8, 2020 at 10:50 pm
Renuka Getchell | Category: Real Estate News, Renuka's Residential Report | Tagged , , , , ,