Whiteboard Topics: 5 Ways Overpricing A Lake Home Costs Sellers

April 9, 2024

If you’re thinking about selling your lake home or already have it on the market, the last thing you want is unnecessary costs. One of the ways these costs can arise is actually from overpricing your home. Luckily, Glenn Phillips, CEO of Lake Homes Realty, has the reasoning why something you might think is beneficial to you might actually hurt you in the long run.

Knowledgeable Buyers: In today’s day and age, buyers have become more knowledgeable than ever before. The access of information that surrounds real estate is more accessible than in years prior. Being able to study the data from real estate and having Lake Homes Realty provide more insight into the market is something buyers use to their advantage. This can lead to price cuts if nobody comes to see your home because they know that it is overpriced.
Failure to Appraise: In 2020, during the Covid-19 frenzy of real estate, there were failures to appraise. However, this was due to buyers willing to cover an appraisal gap. Now there is a standard of the current market.
Increased Days on Market “What’s Wrong With It?”: Having a property on the market for a while, whether it’s because of overpricing or something falls through, ultimately causes a groupthink scenario. Many buyers will start formulating their own idea of something being wrong.
Price Cuts Lead to Low Offers: From a seller’s perspective, you might think to set your own price. From here, you’ll evaluate and drop it accordingly. This can help you find the range in market terms of where it works, but the buyer still might think it’s not at the right price.
Marketing Cannot Overcome Price: The idea of having a real estate agent “Market my house better” isn’t the full solution. If your home isn’t receiving any offers, it’s more than likely not a marketing issue. Fixing the price is the main way to fix these issues of not having any offers.

When it comes down to it, pricing matters way more than you might expect. It is key to make sure that you haven’t overpriced your lake home. In today’s market, this overpricing is something you won’t get away with if you’re truly wanting to get your home sold. If this is something you think you are struggling with, reach out to one of our lake agents. They would be able to help and guide you through the selling process.