Why Some Granbury Homeowners Price Their Home Too High

Research has shown time and time again that no matter the real estate market conditions, pricing your home at the fair market value is the best strategy to get it successfully sold at the best price possible. Yet some Granbury homeowners still insist on asking too much for their home, and many times it ends up costing them.

So why do some homeowners insist on setting the asking price for their homes too high? Here are the most common reasons that homeowners often want more money than their home is truly worth.

Reasons Granbury homeowners overprice their home

These are the most popular reasons for a homeowner to set a list price too high.

There is no hurry to sell

Some believe this may be the most common reason for setting a home's list price above its value. If a homeowner is in no hurry to sell their home they often will try to get as much as they possibly think the home could be potentially worth and are willing to hold out until they believe they could find someone to pay that price. The problem is this could have you waiting until the home appreciates in value and that price actually becomes the fair market value of the property. 

Wanting to have plenty of room to negotiate

Some homeowners believe that setting a higher list price will give more room to meet in the middle at an actual agreed-upon selling price with a potential buyer. They believe that setting a higher price when they receive an automatic low offer will help them to guarantee meeting in the middle at the fair market value of the home. Unfortunately, this is almost never the case with this pricing strategy. Many times homes listed above their value sell for below their value.

A home in the same neighborhood sold for that much

A homeowner may have seen a home down the street or a couple of blocks away that sold for a surprising amount of money and now believes that their home could sell for just as much. Even if a home is in the same neighborhood or maybe just a couple of doors down it does not mean that the house is worth the same amount. Even with the same type of floor plan, there are differing factors that contribute to a home's actual market value.

It has been estimated as worth a certain amount online

There is a popular real estate website that many people use to look at online listings and this website also offers an estimate of how much it believes a home to be worth. The unfortunate truth however is that it is impossible for an online tool to estimate an actual fair market value of what a home is worth. It takes a bit of human knowledge and an actual physical look at a property to give it a true and accurate estimate of fair market value. You never want to rely on an online tool to give you an estimate of how much your home is worth. It could be a very good loose ballpark figure to start with but it is never a good concrete number to rely on.

The owner needs a certain amount of money

In some cases, the Granbury homeowner may need a set dollar amount in order to pay off their current mortgage and then make a significant down payment on the next Granbury home they want to move to. Regardless of the homeowner's current financial obligation for paying off their loan and their plans to get into their next home a home seller is only going to want to pay the actual value for the home. Home buyers are interested in purchasing a home and are looking at it as a business transaction. A potential buyer is not going to give much concern to the personal needs of the home seller. This is not because they are coldhearted it is simply because they need to look out for their best interests and they want to make sure that they are not taking a huge financial risk with the biggest purchase they will make in their lifetime. To a home buyer purchasing a home is strictly business. They are not looking to give a current homeowner a leg up so much as they are looking to make a smart purchase for their personal need.

Working with the wrong agent

Sometimes a home can be listed for too high because the homeowners have hired an agent who is either not experienced in marketing homes or has a bit of greed and is hoping to cash in on a larger commission. Making sure to set a home at the proper list price is as important as making sure you are hiring a local agent who has plenty of experience and success in selling homes in your area. Not all real estate agents are the same and you want to make sure you are hiring one that knows what they are doing. Because pricing a home too high can end up in selling a home for less than you could have.

If you are hoping to sell a home in Granbury or purchase one please contact me. I am highly experienced in Granbury real estate and have helped several people successfully sell their homes for the highest price possible. I have also helped many clients looking for a new home in Granbury find their next amazing Granbury property that they love. Contact me any time to talk about your Granbury real estate needs.