3 warning signs you have overpriced your home

Pricing a home too high can be one of the most common – and costly – mistakes, according to Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa.

He explained that overpricing can not only delay the sale of a property but can result in a lower sale price than initially anticipated.

“A well-priced home typically generates interest within the first few weeks it’s listed. When a home sits on the market for too long without attracting offers, it’s usually an indication that buyers are finding better value elsewhere,” said Goslett.

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To help sellers identify that their property might be overpriced, RE/MAX of Southern Africa shares the top three warning signs:

1. Low or no buyer interest

If your home has been listed for several weeks without much interest, this is a primary indicator that potential buyers are finding other properties more attractively priced. Buyers often use online platforms to compare properties, and an overpriced home will quickly lose appeal. When potential buyers aren’t even booking appointments to view your home, this could mean they’ve ruled it out based on price alone.

2. Feedback from buyers

Sometimes, potential buyers will provide feedback to the agent, which is invaluable. If they’re consistently commenting on the price as a deterrent, take it seriously. Buyers today are well-informed, and if they feel the home is overpriced, they will probably avoid negotiating altogether.

3. Comparable sales in your area

If similar homes in your area are selling faster or at lower prices, it’s time to reassess. Buyers will be aware of the market trends in your neighbourhood, so setting a price that is far above comparable properties will discourage interest and could lead to longer listing times. Speak to your real estate agent because they will know not only what similar properties were listed at, but also what they actually sold for.

What to do if your home is overpriced

If you notice any of these signs, Goslett suggested that it may be time to revisit your pricing strategy.

“Working with an experienced real estate agent is crucial in this regard as they can advise how to adjust the price to attract a serious offer.

“Reducing the price multiple times in small increments may signal desperation to buyers, which can work against you.

“Instead, it might be better to make one significant reduction to hit a new price bracket, which can open your property up to a fresh pool of buyers who may not have seen it previously,” he recommended.

While it is possible to correct the mistake if the home is overpriced, the best strategy is to get the listing price right from the very start.

“Homes receive the most attention in the first few weeks after being listed, that’s why getting the price right from the start is so important.

“When putting your home on the market, be sure to lean on the advice of your real estate agent to give yourself the best opportunity to sell the home for full value,” Goslett concluded.

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