Accidentally Buying a Home
There are many powerful search tools available to buyers and to their agents which allow people to very specifically narrow down the homes they’re viewing. If you’re in a price range in competition with homes that are more sought after than yours, the amount of traffic you will see through your home will be negligible.
Let’s look at condos for example. Imagine a home buyer browsing through hundreds of listings and the price range allows for a brand new 1100-square-foot two-bedroom condo in a desirable North Vancouver neighbourhood, and there are 10 homes available. Will the buyer even consider the 800-square-foot one-bedroom and den built in 2008? How about the 14 year old two-bedroom condo with the original kitchen? Unless those homes had something truly spectacular that set them apart, like an unmatched view of the ocean, chances are buyers will simply disregard those listings because they cannot compare to the other homes in that price range.
Now, let’s look at the other side of the coin. Imagine yourself browsing one-bedroom condos, with the odd one-bedroom and den popping up within your price range when you stumble upon a very nice looking 1100 square foot two-bedroom home. Well-priced homes attract so much more attention and once you have multiple parties interested in a property now there exists the possibility for multiple offers.
The only real time anybody overpays for a home is when they get competitive. An overpriced listing will linger on the market, and the only attention it will attract will be from investors looking to throw around low-ball offers in the hopes that somebody is desperate enough to accept. Once buyers and agents see that a home has been sitting on the market for an extended period of time, they begin to wonder what’s wrong with the home and questions why it hasn’t sold yet.
Do not let yourself end up in a situation where you have an overpriced home for sale. Home buyers today are well-educated and with the guidance of a knowledgeable Realtor will have an excellent understanding of the value of homes they’re looking at. Price your home correctly based on comparable sales and recent market activity and avoid the headache and disappointment associated with a home that will not sell.