I don’t know about you, but I don’t like overpaying. Yes, there are times when we might overpay for things because we NEED them right away or REALLY want them, but don’t you usually shop around to get the most bang for your buck or is that just me? What about when it comes time to buy a new house?

It’s not uncommon for us to be contacted by sellers who are looking for a new agent because their home didn’t sell. The number one reason homes don’t sell is because they’re overpriced, which is why we always look at the price first. We can tell pretty quickly if a home is overpriced, as can most agents, so why in the world would a seller overprice their home?

Sometimes it’s not their fault. They may have received bad advice from their agent. Or they might actually have done it on purpose, usually for one of two reasons. Either they didn’t want to move and would only move if it was worth their while. Or because of reason #2. We can usually tell when we’re in a reason #2 situation when the seller says things like “My home is the nicest in the neighbourhood. These renovations cost a fortune. This home is one of a kind. You can’t find a better location.”  It’s great to love your home. We want all our clients to love their homes. But when it comes time to sell, it’s important to think with your head and not your heart and reason #2 tends to evoke emotions that stand in the way of logic.

How do we find out if we’re dealing with a reason #2 situation? We ask THE question: “How many places did you look at before you bought this one?” The answers we usually receive are “Just this one” or “A couple” or “Not too many”. To us, this means that they likely set a high list price on purpose because they didn’t shop around when they bought so they overpaid and now they have to sell for a high list price to save face and avoid selling at a loss (reason #2). Basically, they need to sell for an inflated price to correct the mistake they made when they bought.

The problem with a high list price is that they’ll probably have to wait around for a special buyer who’s willing to pay an inflated price and this could take a long time. What happens if they have to sell by a certain date?  What happens if that special buyer never appears? Wouldn’t it have been better to not put themselves in that position to begin with?

So avoid overpaying and future problems by shopping around before you buy. When it comes time to sell, you won’t have to wait around for that special buyer. If you do receive an inflated price, it’ll be extra money in your pocket instead of compensation for your earlier mistake of overpaying. It pays to be a smart shopper. Sometimes tens or even hundreds of thousands of dollars.