Looking to Sell Your Home in San Diego? Be Careful not to Overprice Your Home

Sellers beware of the challenges when you overprice your home.

“We can always come down in price later.” Every Realtor has heard this phrase many times before when talking with clients about selling their home. While it’s true, yes you can always come down later, it’s not going to save you money…or time.

San Diego is one of the top real estate markets in the country. When your home hits the market, all eyes are open, ears are listening, and decisions are being made. You have one opportunity to set the stage to get the most interest in your home and the most offers at your table. Overprice your home and run the high risk of these common situations.

Those ready, willing, and able buyers, will move on instead of moving in. The serious buyers are the ones that are qualified and on a time crunch. They may be paying rent at a property they’re ready to get out of and each month hurts their down payment on the new home. Or, they currently have their home in escrow and the accepted offer is contingent on them locating and finding a new home. These are the buyers that would have paid much more for your property in a multiple offer situation by pricing it correctly. When this type of buyer comes across an overpriced home, their agent gives them the exact line that we began with…”they are probably testing the market and going to come down in price later.”

Secondly, if your property sits on the market it becomes stale. Stale properties create opportunity…for the buyer. The real estate market is very competitive, especially in the recent years. If your home doesn't sell within a normal amount of time, which varies depending on community and price range, buyers will come to two conclusions. 

1. There is something wrong with the property, either aesthetically or structurally.
2. The sellers are now getting desperate to sell. Neither are good. 

This gives the buyer motivation to come in at a much lower price than current market value and an opportunity to use market time as a negotiating platform. On top of that, a multiple offer situation is much less likely.

Lastly, you’re wasting time, which equals money. How much are you paying each month with your mortgage, insurance, and property tax? These are your carrying costs. The amount that it takes for you to continue to carry the property. If your carrying costs are $5k and your home sits on the market for 6 months, that’s $30,000 wasted because the home was overpriced from the beginning. Price it correctly and you can save your carrying cost and most likely get at or more than your asking price.

If you are thinking of buying, selling, or investing in the real estate market, or want more information/tips on selling your home, contact me and put my team to work for you today!

Looking to Buy, Sell, or Invest? Contact:

David Demangos

858.232.8410
Locally Known, Globally Connected
Luxury Home Marketing Specialist
Global Property Specialist

David@AwesomeSanDiegoRealEstate.com
www.AwesomeSanDiegoRealEstate.com
Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!