How to know if you have overpriced your home

"Everyone seller wants to achieve the highest price possible when they put their homes on the market, and this is completely understandable. The more money you receive from the sale, the more capital you will have to work with when you're searching for a new home. However, you also need to be careful to set a fair asking price, or your property might end up sitting on the market for much longer than expected." says Gerhard Kotzé, CEO of the RealNet property group.

"Pricing your property too high is one of the most common and often costly mistakes that sellers make. It doesn't just delay the sale of a property, it can also result in a much lower sale price than you initially expected. This is because well-priced homes usually generate interest within the first few weeks after listing. However, when a home is on the market for too long without attracting any serious offers, it typically tells buyers that people are finding better value elsewhere.

Here are a few vital signs to look out for that may indicate your home is overpriced:

Limited or no interest from buyers

If your home has been on the market for several weeks without much interest, this is the primary sign that potential buyers are consistently finding properties that are priced significantly more attractively. Buyers often use property portals to compare homes, and an overpriced home will stick out like a sore thumb and quickly lose appeal.

Comparable sales in the area

If other similar homes in your neighbourhood are selling quicker or at lower prices, it might be time to go back to the drawing board. Potential buyers will be aware of the market trends in your neighbourhood, so setting a price way above similar properties will discourage buyers from even booking a viewing.

Buyer feedback

Occasionally, buyers will provide feedback to your Property Practitioner, which can be priceless. If these buyers are consistently telling your Property Practitioner that the price is putting them off, take it to heart. Buyers are well-informed these days, and if they feel your property is overpriced, they might just avoid negotiating with you entirely.

If you notice any of these signs, it might be time to take another look at your pricing strategy, and working with an experienced Property Practitioner will be crucial in this regard. And, while it is possible to correct the mistake if you overprice your home, the best strategy is to get the price right from the beginning.