The real estate market is improving, which is welcome news for home sellers. Escalating prices give home buyers more confidence to buy, which generates more buyers and greater competition. This type of market often leads overpricing, which can be dangerous at any time. Here is what may happen when overpricing your home for sale.
Home Price and Marketing Timeframe
It is a well known fact that list price and marketing timeframe are linked. Overpriced homes can become stagnant for many reasons. First, the higher in price range you go, the fewer the buyers. Furthermore, high priced homes make lower-priced ones appear a better deal. Thus, overpricing basically assists competing listings. Thirdly, potential buyers are more critical as the price increases. Your home must have clear justification for a high price or potential buyers will not have interest.
Listing Time and Selling Price
Another well-known fact is that extended marketing times lead to lower selling prices. Buyers form a negative view of properties that do not sell quickly. They expect that things must be wrong with the house (and not simply that the price was the problem).
Also, as a seller, you will usually lower the price over time. Even if you drop it to where you should have started to begin with, the damage will have already been done. Buyers submitting offers at this stage will often submit lower prices than for a newly listed home. In the end, your property will sell for less because you overpriced.
What may happen when overpricing your home for sale is both time and money. It is that simple. Even if the market is hot and listings are receiving above list price, overpricing has no upside. It is always important to start at the correct price point. This brings about the most interest, increases demand and yields the highest price. Work with an experienced real estate professional who understands the current market and proper pricing strategy to ensure that you do not make the mistake of overpricing your home for sale.
When working on house enhancements, we generally focus on the larger items. Often the most useful enhancements are the little ones that make things easier. Whether you are buying a new house or renovating an existing one, give some thought to the following helpful house enhancements.
Advantage of Duplicates
In your home, duplicates can be a great thing. An additional sink in the kitchen or utility room can be convenient. Extra cable connections enable flexibility for furniture placement. Duplicate closets can hide clutter and keep belongings easily accessible. These are merely some of the many possible extras that you may appreciate while living in a home.
Consider locations in a room where you might want the flexibility to charge equipment. Install outlets in those spots. For example, an extra fridge or freezer might be useful in the garage. Perhaps you can have an outlet in a bathroom cabinet for charging toothbrushes or electric razors out of plain view. Exterior power outlets are another helpful amenity that you can install in advance.
Forethought on Enhancements
When planning layout and amenities, think about more than its present use. For example, if you plan to replace carpeting with hardwood flooring later, the height difference can affect the changeover from room to room or against a stairwell. Plan the space with those changes in mind to reduce future labor and expense. This should also be considered for changes like sound systems, plumbing, central vac, and light fixtures.
When Larger Is Better
Sometimes an upgrade in size is well worth the added expense. Consider whether increasing the size of a specific item is beneficial. For instance, taller garage openings will allow for trucks. A larger kitchen sink may make a difference for large pots and pans. A wider deck may provide better walking room around the seating and grill.
The best means to brainstorm other helpful house enhancements is to visualize the room and how you will use it now. Then imagine how you could use it later on. What are the features that you need to adapt to both. Do not forget about family gatherings, new equipment, toys, etc. You can also check with your builder for additional suggestions.