Dangers of Over-Pricing
The first few weeks of market exposure usually bring the highgest price for a home and after sitting unsold on the market, your home will become stale and more likely to recieve lower offers.
Here are some tips about pricing:
- Overpricing immediately eliminates the number of potential buyers to view your home. Many will eliminate your home just because it is out of their price range!
- Overpricing only encourages those buyers who are shopping by comparison. When they look at your home they may be convinced to make an offer on a different property.
- Overpricing can cost you the contract after accepting an offer. Since an appraisal is usually required in financing a property, it is futile to price a property for more than it’s worth.
- Overpricing tends to dampen other salesperson’s attitudes, making it less likely to be shown.
- Overpricing lengthens marketing time, costing you more in mortgage payments, taxes, insurance and potential unplanned maintenance costs.
- Overpricing usually results in a lower selling price than would have been otherwise obtained. Buyers often see these properties as “shopworn” and lacking in some way.