The Cons of Overvaluing Your Home

Homeowners looking to earn big bucks by overvaluing their house on the market are in for a huge surprise. After all, many homeowners are emotionally attached to their house and often believe that their home is worth more than what it gets valued at. In a market as challenging to sell as the real estate market, the odds can be stacked against you.

Note that other houses that are being sold, whether in a close vicinity or around a neighboring county, are competing with yours. The cheaper competition usually prevails as buyers want a reasonably priced home that meets their criteria. Don’t let your emotions get in the way of reason, as you must remember that beauty is in the eyes of the beholder and not every buyer will see what you see.

If your overpriced home doesn’t get any initial offers, it risks languishing on the market for months on end. At this point, the sense of desperation begins to sink in as buyers will lower their offers to some ridiculously low figures in attempts to lower the bar that has been set.

Many homeowners utilize the strategy of setting the price of their home at a high rate, and then wait to begin the negotiation process with the potential buyer. Often times, this won’t work as a lack of patience has become prevalent in today’s market. Buyers tend to avoid negotiating due to the fact that it can take long periods of time and their list of preferred houses might shrink after week-long discussions.

If you are a homeowner looking to sell your house, don’t let your emotions get the best of you. You’ll only cause more harm than good and could potentially be setting yourself up for failure.

Bio: Kuba Jewgieniew is the head of Realty ONE Group, a real estate brokerage firm that was awarded one of the fastest growing companies in the United States by Inc. 500.