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Overpriced Homes

I am pretty sure that during your life, you have seen a couple of seemingly flawless houses with the ‘for sale’ sign. That would be completely fine, if the sign was not there for too long. Have you ever thought about why these homes, even though absolutely beautiful, do not sell?

If you think it is because of their location, you may be partially right. Sometimes the house may be just astonishing, but if it is too far from any facilities or the surrounding environment is not very pleasant, the quality of the property itself may be irrelevant. But as previously said, this situation only happens occasionally or there are other factors to the problem. Usually these stunning homes, which seemingly do not sell, are simply overpriced.

Many buyers do not even bother to put in an offer on overpriced homes. The reason is that they do not want to offend the seller by offering a price that is way below the asking price; they simply consider it to be embarrassing for both sides. Furthermore, the sellers are expected to realize they are asking too much. Buyers are convinced sellers know what they are doing and would not sell the house for any less money; otherwise, they would have dropped the price already.

My advice to you is, if you are trying to sell your home and nobody has put in an offer, even though the property has been on sale for some time, think about whether the price you are willing to sell it for is unrealistic. A very easy way to check is to ask a realtor (yours, or preferably a specialist for your neighborhood) the average price for a home like yours in the area at the time you are trying to sell it. Also, if you have almost no showings, no contract in spite of showings or, as mentioned, no offers at all, you are overpricing your property. It is understandable that you like and value it, but be realistic, who is going to buy it if it is unreasonably expensive?

Simply said, people are not fools. In order to actually sell overpriced homes, their sellers have to lower their price eventually anyway. So why not to be sensible right from the start and thus avoid days and weeks of waiting and the worry that your house does not seem to be liked?

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Toronto Real Estate Board - IDX Last Updated: 12/12/2019 10:24:36 AM