Is your Boston condo priced too high?
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Is your Boston condo priced too high?
Every Boston condo for sale seller wants to get their condominium sold quickly, for as much money as they can, with as few headaches as possible. And chances are, you’re no different.
But did you know one of the biggest things that could jeopardize your success is the asking price for your home? Pricing correctly is one of the most crucial steps in the Boston condo selling process.
So, how do you know if you’re missing the mark? Here are four signs your high asking price might be turning potential buyers away—and why leaning on your real estate agent is the best way to course correct.
1. You’re Not Getting Many Showings or Offers
One of the most obvious signs your Boston condo for sale may be overpriced is a lack of showings. If it’s been on the market for several weeks and only a few buyers have come to see it—or worse, you haven’t gotten any offers—it could be a clear indication the price isn’t matching up with what buyers expect. Because buyers who have been looking for a while can easily spot (and write off) a home that seems overpriced.
Your real estate agent will coach you through this, so lean on their experience for what you may want to try to bring more buyers in, including considering a price cut.
2. Buyers Have Consistent Negative Feedback after Showings
And if after the showings you do have, comments from the potential buyers aren’t great, you may need to course correct. Feedback from showings is an important part of understanding how buyers see your house. If they consistently say it’s overpriced compared to other homes they’ve seen, it’s time to reconsider your pricing strategy.
Your agent will gather and analyze this feedback for you, so you can look at how your house stacks up in the market. They can also suggest specific improvements or staging changes to better justify your asking price, or recommend one that aligns with today’s buyer expectations. As the National Association of Realtors (NAR) explains:
“Based on all the data gathered, agents may make adjustments to the initial price recommendation. This could involve adjusting for market conditions, property uniqueness, or other factors that may impact the property’s value.”
3. It’s Been on the Market for Too Long
And that lack of interest is ultimately going to lead to it sitting on the market without any serious bites. The longer it lingers, the more likely it is to raise red flags for buyers, who may wonder if something is wrong with it. Especially in today’s market with growing inventory, a long listing period means your house is stale – and that makes it even harder to sell.
Your real estate agent will be able to give you perspective on how quickly other homes in your area are selling and walk you through what’s working for other sellers. That way you can decide together if there’s something you want to do differently. As a Bankrate article says:
“Check with your agent about the average number of days homes spend on the market in your area. If your listing has been up significantly longer than average, that may be a sign to reduce the price.”
4. Your Neighbor’s House Sold Without an Issue
And here’s the last one to watch out for. If similar homes in your area are selling faster than yours, it’s a clear sign that something is off. This could be due to things like a lack of upgrades, outdated features, or a less desirable location. Or, it may be priced too high.
Your agent will keep you up to date on your competition and what changes, if any, you need to make your home more competitive. They’ll offer advice on small updates that could increase your home’s appeal or how to adjust your strategy to reflect the reality of the market today.
Boston Condos for Sale and the Bottom Line
Pricing a home correctly is both an art and a science. It requires a deep understanding of the market and buyer psychology. And when the price isn’t drawing in buyers, there’s no better resource than your agent on what you may want to do next.
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Is your Boston condo priced too high?
When it comes time to sell your home, determining its exact value can be a challenge. Naturally, homeowners want to get the most value for their home. However, if it hits the market at too high a price, it could cause serious complications in the selling process.
Attracting the wrong condo buyers
An overpriced Seaport condo for sale creates a kind of seller’s limbo that draws the attention of the wrong buyers, which is a surefire way to start your selling process off on the wrong foot.
A vast majority of homebuyers begin their home search online, especially during these days of social distancing amidst the COVID-19 pandemic. If your home is overpriced in comparison to other listings in your area, it won’t appear in their search results. In this way, an overpriced home is blind to its intended buyers and actually drives traffic to nearby listings that are more accurately priced.
An overpriced Boston condo for sale can’t compete with listings in a more expensive bracket. Buyers know what they want, and they know what to expect in their price range. When they notice a home is missing the square footage, features, and amenities typically found in others at the same price, they will quickly lose interest.
Fewer real estate showings / virtual tours
Showings—both physical and virtual—play a significant role in the sale of your Beacon Hill condo for sale. They give buyers a first-hand look and provide them the opportunity to ask questions and gather more information. Selling your home is a numbers game. The more showings scheduled at your listing, the more potential buyers you have. The more potential buyers, the greater chance of an offer.
Your agent knows that showings are critical to capturing buyer interest. But if the home is overpriced, they will have difficulty attracting attention to your home. This can slow the entire home selling process, leaving both the seller and agent feeling frustrated.
Expired real estate shelf life
Think of the home you’re selling as a fresh tomato. Off the vine (newly listed), it is fresh and attractive, appealing to everyone in the market and standing out amongst the other tomatoes. As time goes on, no one buys the tomato and it begins to overripen and wither, losing its appeal. This is what happens to an overpriced Boston condo for sale in the minds of buyers.
New Boston condo for sale listings attract the most attention—that’s when buyer interest is highest. The longer your home is on the market, the less appealing it becomes. At a certain point, sellers are forced to lower the price. However, this lowered price won’t have the same impact as hitting the market correctly priced the first time. Once price drops begin, they can continue, which creates the risk of selling the home for less than what it is worth.
Lastly, the longer your home is on the market, the more expenses you incur. Mortgage payments, utility costs, and seller’s fees will continue to pile up, making it harder to recover from these costs when your home does eventually sell.
Post-sale complications
Let’s say you do find a buyer at the overpriced cost. During the closing, the lender will order an appraisal of your home, and if the appraiser finds that the market value of the home is less than the selling price, they could potentially deny financing.
We get it. It’s a seller’s market out there (for now) but even in a hot market, overpricing your Boston condos for sale can be bad business. At Ford Realty, we’re big believers in the data behind properly-priced Beacon Hill homes; they sell faster and for more money than homes that are asking too much.
But maybe you’ve already signed with an agent and are on the market with a price you’re worried is too high? If you suspect you may have overpriced your Beacon Hill condo, here’s how to tell.
Your Neighbors’ Condos for sale Keep Selling
The number one way to tell your Boston condo overpriced? If your neighbors are going on and off-market while your home is just sitting there! Particularly if you’re in a “hot” neighborhood like Beacon Hill or Boston Midtown, your home should be seeing offers within the first few weeks on the market. Unfortunately, by pricing yourself too high, buyers see your neighbors’ lower-priced homes as a value and quickly snap them up. Oops!
Original Boston Real Estate Blog Post
You’re Not Getting Any Showings on Your High Rise Condo
There are only a few reasons you wouldn’t be getting showing requests in a seller’s market. One is that your downtown Boston condos photos aren’t good (your agent used a professional photographer, right?) and the other is that you’re overpriced. Think of buyers searching under “thresholds.” Those are usually nice, round numbers like $500,000 or $975,000…if your home is priced above (especially just above) one of these thresholds you may not even be appearing in buyers’ MLS search results. Of course, a good buyer’s agent should be showing them your Boston home, anyway, but you can’t count on it.
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Offers Aren’t Coming
Offers Aren’t ComingOf course, without showings you won’t be getting offers, but what if you have tons of showings but no offers? This is a clear indication you’re not only asking too much but way too much. Buyers know home prices are somewhat negotiable so if they’re really interested, they’ll throw out an offer just to see what might happen. If they come to the table already feeling like you’re way too far apart on the price to meet at an agreeable price they may just choose to avoid the negotiating hassle altogether.
You, Not Your Agent, Set the Price
Particularly in a low-inventory market, some Realtors are anxious to get more listings. In an ideal world, you and your agent will agree on a price together based on data, comps, and experience. In a world where your home is overpriced, you’ll throw out an inadvertently-high number and your agent will say, “No problem!” Sellers can’t be as objective about the price as agents can, so if you priced your own home you may be asking for trouble.
We’ve written before about overpricing your Boston condo for sale and the stress it can bring. There’s more to selling than putting it on MLS remember, no amount of effective marketing will work if your Boston condo for sale is priced too high.
