When it comes time to sell your home, it’s natural to want the highest possible price. However, overpricing your home can backfire in ways that many sellers don’t anticipate. In the Kansas City real estate market, where buyers have access to an abundance of data, setting an unrealistic price can cost you time, money, and opportunities.
The Problem with Overpricing
Overpricing your home might seem like a harmless strategy—after all, you can always lower the price later, right? Not necessarily. Here’s why listing too high can be detrimental:
- Fewer Showings – Buyers and their agents filter listings based on price. If your home is overpriced compared to similar properties, fewer people will even see it. I know sellers will say, “It’s a special home and will sell to the right buyer” but that’s your agent is trying to get multiple buyers interested in the home. That way you’ll actually get a higher price and possibly have people competing for your home.
- Longer Time on Market – A home that lingers on the market starts to look undesirable. Buyers assume something is wrong with it, and you may end up making bigger price reductions later just to regain interest. We are seeing that happening a lot in Kansas City right now with too many overpriced homes.
- Appraisal Issues – Even if you do find a buyer, if the home doesn’t appraise at the inflated price, the sale can fall apart unless you reduce the price or the buyer brings extra cash to the table.
- Helping the Competition – If similar homes in your area are priced lower and appear to be a better deal, yours may be used as a comparison to justify another home’s more reasonable price.
Choosing the Right Realtor
One of the biggest mistakes sellers make is interviewing multiple Realtors and simply choosing the one who gives them the highest listing price. A skilled agent should provide a data-backed price recommendation rather than just telling you what you want to hear. The right agent will be honest about what your home is truly worth and how to make it as marketable as possible.
Preparing Your Home for a Successful Sale
To maximize your home’s value and appeal, consider these essential steps:
- Make Necessary Repairs – Buyers notice even small issues, and unaddressed repairs can give the impression that the home hasn’t been well-maintained. When buyers look at a repair cost, they tend to over-inflate that cost by double or even triple the true cost and reflect that amount in a lower offer price. I like to call this the “Hassle Factor.” If the buyer has to deal with repairs after moving in, they’ll expect compensation for the inconvenience.
- Stage the Home – Whether it’s professional staging or just decluttering and depersonalizing, a well-presented home allows buyers to envision themselves living there. When selling your home, our real estate team pays for this service because we feel it’s that important.
- Professional Photography – High-quality photos make a huge difference in attracting online interest. Listings with professional photos get more views and showings. I feel like this should be obvious, yet too many Realtors don’t bother to pay for professional photos. I believe this hurts their sellers.
- Strategic Marketing – A well-priced home still needs the right exposure. Your agent should utilize online listings, social media, open houses, and networking to attract the right buyers.
Pricing It Right the First Time
The best strategy is to price your home competitively from the beginning. A well-priced home will generate more interest, potentially leading to multiple offers and a quicker sale at or even above asking price. Trust your Realtor’s expertise, focus on making your home as appealing as possible, and take a strategic approach to marketing. By doing so, you’ll sell faster and maximize your home’s true value in the Kansas City market.