Overpricing Your Home
Many sellers believe that if they price their home high initially, they can lower it later. This is not the case!
Often, when a home is priced too high, it experiences little activity. Gradually the price will come down to market value, but by that time it’s been for sale too long and many buyers will be wary and reject the property even if there is nothing wrong with it.
On occasion, the price is dropped below the market value because the seller runs out of time. The property sells for less than it is worth.
Missing the Right Buyer
You may think that interested buyers “can always make an offer,” but if the home is overpriced, potential buyers looking in a lower price range will never see it, or they think it will be a waste of everyone’s time to offer what they consider it to be worth.
Those who can afford a home at your asking price will soon recognize that they can get a better value elsewhere.
As soon as a home hits the market, there is a flurry of activity surrounding it. This is a crucial time when Realtors and potential buyers assess whether or not they are interested in your home.
If the home is overpriced, interested parties tend to lose interest immediately. By the time the price drops, a majority of buyers are lost.