In the Orlando area, the home sales are up 24% from July 2012 to July 2013. With news of increasing sales prices in Orlando and across the country, home sellers are listing properties to take advantage of a hot market. The problem is that although the market has certainly shifted to a seller’s market in Orlando, only about 35% of the listing inventory actually sells. What about the other 65%? They’re probably overpriced.
This is a pretty common conversation I have with home sellers in any market; but particularly if the market is improving. Sellers want to get the most money possible so they will ignore clear indicators that buyers in the area are not willing to pay that price for a similar home. Pricing is an art not a science and there are many factors that play into the appropriate listing price. A great listing price is one that procures an offer or multiple offers and sometimes takes some adjusting along the way! Here are the top 5 signs your home may be overpriced:
- The National Association of Realtors® statistics show that if a home has been shown 10 times and has received no offers, it is overpriced.
- They also tell us that if we go two weeks without any showings we’re overpriced.
- If the feedback from other agents or buyers is that the house is overpriced, that’s a clear sign it’s time for a price reduction!
- If you continuously receive feedback about the home’s condition, floor-plan, or lack of updates those all translate to “house is overpriced”. There are many reasons why a home price may make sense on paper but if the actual buyers that are in the market don’t feel the same way – then you have to adjust the price. Price cures all things.
- Last but not least, your home is overpriced if the only offer you receive is particularly low. The lack of inventory may lead some buyers to make an offer on an overpriced listing in hopes they can get the seller down to reality. If you receive an offer that’s 10-20% (or more) lower than your asking price that is a sign that your home is overpriced.
Buyers will pay a premium for a nice home in good condition and in a good location; but they won’t grossly overpay. Price your home in the range of values for similar homes and if buyers are telling you they still don’t think that’s the right price make adjustments and do it quickly. It is always a snapshot in time and that means that the market value can change regularly. Keep up with the market around you and adjust when new comparable homes sell that affect your home’s value.
Find out your Orlando home value. We’ll get back to you within 24 hours with a brief market analysis.
Image credit: New Lower price by Rutlo via Creative Commons
Statistics via Orlando Regional Realtor Association