4 Big Drawbacks of Overpricing Your Home

As you can see, overpricing your home can have several drawbacks, such as scaring buyers away and netting you less money.

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When trying to sell your home, it’s easy to get a little emotional and want to get as much money for it as we can. This, unfortunately, is how overpricing happens. There are four big drawbacks to overpricing your home:

1. It can scare potential buyers away. Those buyers will look at the price, get nervous, and perhaps think that you are not willing to come down to a more reasonable price level.
2. It can create buyer’s remorse after purchasing. Perhaps within the 10-day due diligence period, they may find things wrong in the inspection reports. When they do that, they could have a little remorse in feeling that they’re not getting as much value for what they’re paying for.
3. It can net you less money. Any listing can get stale after two to four weeks. If you overprice your home, it’s going to sit on the market for quite a few months. During that time, you’re going to pay for things like upkeep, mortgage payments, taxes, and a myriad of other ongoing expenses.
4. It can cause appraisal issues. If your home is overpriced and the appraisal comes in at a lower price, that’s going to cause problems such as price reductions and protracted negotiations.

If you have any further questions about overpricing or need an expert valuation done on your home, please don’t hesitate to give me a call or send me an email. I look forward to helping you in any way I can.

Hidden Costs to Look Out for When Selling Your Home

Buying a home? Click here to perform a full home search

Selling a home? Click here for a FREE Home Price Evaluation

When you sell your home, there are some hidden costs you should be aware of that will affect the amount of money that you net on your home sale.

The first hidden cost most sellers don’t think about is repairs. Before you put your home on the market, get a home inspection. That way, you can see if there are any problems before the buyer does their inspection. Some sellers don’t want to incur the cost of an inspection, but you will actually save money. The costs of making repairs that you find before you list the home will be far less than the costs the buyer will ask for.

Another initial cost sellers should know about are professional photographs. I pay for professional photographs on all of my listings, so this is not a cost incurred by my sellers. I’ve seen million dollar listings without professional photos, and it just does not look good. When you have thousands of buyers looking at your house online, you want to have the best pictures possible.

Landscaping and curb appeal are also incredibly important. Invest a little in cleaning up the outside of your home. Remember, if your home doesn’t look nice and inviting on the outside, it doesn’t matter how beautiful the interior is - buyers will keep on driving.

Staging your property is crucial. Think of it this way - there are probably three different shoe stores in the mall, and each one is staged differently to draw people into that particular store. Your home is competing against similar properties in the area, and if those properties aren’t staged, your staged home will look more appealing. Not only that, but staged homes sell for more money than unstaged homes.

When you sell your home, hopefully, you are making some huge capital gains. The downside is you may have to pay a capital gains tax if the gains are too big. Married couples can get $500,000 in capital gains without being taxed, and single owners can get $250,000 in capital gains without being taxed.

Finally, there are closing costs. Typically in Nevada, you can expect to pay 1.5% in closing costs. That covers things like the transfer tax, title fees, and your agent’s commission.

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Investing in staging and professional
 photography will get you more 
money on your home sale.

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When you are preparing to sell your home, have your agent run a full market analysis so you know how much money you’re going to net on your home sale. Investing in staging and professional photography can increase that amount. If you have any questions, give us a call or send us an email. We would be happy to help you!