OVERPRICING: What Does it Really Cost You?
Any Real Estate expert knows that the most important feature in any new “For Sale” Listing, is the correct Market Value Price.
There is no secret about Sold Prices in any neighborhood; accurate information is readily available. Buyers are not naïve, and they never plan to overpay. Sellers who want to ” leave room” to negotiate, or create other reasons to price too high, will likely pay a high cost for that unwise practice. Here’s why:
1] Appraisal Problems
If your home does not appraise for the purchase price, the sale will likely fail.
2] Selling the Competition
Your listing makes the lower prices of other homes seem like a bargain.
3] No Showings
Buyers are not naïve. If your home is overpriced they won’t bother to come.
Agents who cover your area will see most new listings. If it is branded
as “overpriced”, it is difficult to reignite interest, even if you later
reduce the price.
Overpriced homes sit on the market a long time. If the area is reasonably
active – and your house is sitting- Buyers wonder: what is wrong?
6] Lost Opportunities
You lose Buyers whose pre-set budget is outside of your advertised price.
They may never come to see your home, even if it eventually sells within
their price range.