Which Is Better: Overpricing or Underpricing?

Pricing a home is tricky, but does it make more sense to price the home for more or less than its worth? The answer may surprise you.

If you’re a home seller, you might be wondering whether it’s better to overprice or underprice your home. Of course, neither is better. The best strategy is to price it just right. However, sometimes the market isn’t very clear and we end up doing one or the other. 

I would say that it’s probably more dangerous to overprice because it will result in the house accumulating market time and no offers. You won’t get your home sold. If the market is going up, that’s not a big deal. If the market is flat or moving down, it’s a real big issue.

Underpricing is an easier mistake to deal with.

Underpricing is probably an easier mistake to live with. When we underprice, it’s likely that you’ll have multiple buyers because it’s a good deal. That will result in the market bringing the price back up to where it needs to be. 

You should definitely be more afraid of overpricing, but we always strive to price just right. If you have any questions for me about pricing or about real estate in general, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.