AVOID TEMPTATION OF OVERPRICING YOUR HOME
1. Branding Problems
When a new listing hits the market, every agent quickly views the property to see if it’s a good fit for their clients. If your home is branded as “overpriced,” reigniting interest may require a drastic price reduction.
2. Selling The Competition
Overpricing helps your competition. How? You make their lower prices seem like bargains. Nothing is worse than watching your neighbors put up a sold sign.
3. No Showings
Today’s sophisticated home buyers are well educated about the real estate market. If your home is overpriced, they won’t bother seeing it, let alone make you an offer.
4. Stagnation
The longer your home sits on the market, the more likely it is to become stale. Have you ever seen a property that seems to be perpetually for sale? Do you ever wonder: “What’s wrong with that house?”
5. Lost Opportunities
You will lose a percentage of buyers who are outside of your price point. These are buyers who are looking in the price range that the home will eventually sell for but don’t go see the home because the price is above their pre-set budget.
6. Tougher Negotiations
Buyers who do view your home may negotiate harder because the home has been on the market for a longer period of time and because it is overpriced compared to the competition.
7. Appraisal Problems
Even if you do find a buyer willing to pay an inflated price, the fact is that most buyers use some kind of financing to pay for their home purchase. If your home does not appraise for the purchase price, the sale will likely fail.