Reasons to Avoid Overpricing Your Home
The listing price of your home should be established only after careful consideration of the reasonable range of value indicated by my Comparative Market Analysis - taking your motivation into account. The price at which you list your property will significantly affect the actual selling price, as well as the length of time it’s on the market.
Your home is most likely to sell when it’s first placed on the market. However, overpricing may cause you to lose the benefit of this important period. Listing your property at too high a price is not in your best interest for the following reasons:
Overpriced listings help sell other homes that are properly listed.
You may attract the wrong prospective buyers meaning those who look and buy in certain price ranges.
Price reductions generally don’t regain the lost market. Many qualified buyers who inspect an overpriced listing, eliminate that house from further consideration.
Cooperating agents don’t want to lose credibility by showing their buyers overpriced listings.
Agents know from experience that fair offers on overpriced houses are often rejected.
Overpriced properties may eventually sell, but generally for less than they would have if they had been properly priced in the beginning.
Banks are also very knowledgeable about fair market value as most buyers require some form of institutional financing for which an appraisal by the lender is required.
