Dangers of Over Pricing your Property
You will lose the momentum and excitement that a new listing generates. Most activity on a listing comes within the first 30 days and in a sellerís market even quicker. An initial high price will discourage buyers, causing you to miss out on a potential offer. Many homeowners believe: The initial listing price isn't that important because the price can always be adjusted down later. The problem with this is you ultimately end up getting less or even worse not selling at all! Sales people pay attention when your house is new to the market. If the house is priced correctly for its condition and location, agents will show it to their clients. If it is overpriced, they won't. Dropping your price later deprives you of the best opportunity to market your house and get the best price.
- overpricing helps sell other more competitively priced homes first. Your home is being used to demonstrate the good value of other properties.
- with too high a list price your home may become stale on the market
- if overpriced and you do get an offer the deal might fall through because of appraisal issues. The lender may consider it a high risk; not being able to justify price as it relates to loan value.
- a strong negotiating position may be lost when your home is on the market for too long.
- too high a price will eliminate a whole class of buyers; shrinking your buyer pool
- prospects do not rush to make an offer on an overpriced property and when they finally do you may be compelled to accept less.††
So, Price it Right - to Sell!