Dangers of Overpricing
- Most of the activity on your home will occur in the first few weeks. Pricing a home properly and then creating immediate urgency in the minds of agents and buyers is critical.
- Buyers who have seen most available homes in their price range are waiting for the “right house” to come on the market. That’s why if a house is priced right, it will sell quickly. The buyers are there waiting for it.
- Don’t start with a high price and the assumption that you can reduce it later. By the time you decide to lower the price, interest will have already waned.
- A major cause for concern is appraisal problems; overpricing can lead to loan rejections and lost time.
- Even if your home is nicer than most, your house won’t be picked for viewing if you set the price too high.
- Buyers and agents are hesitant to make an offer because they fear something is wrong with the property, or they will make offers far below your asking price.
- Fewer potentially qualified buyers will respond.
- You might help sell similar homes that are priced right, as they will look like a better value than yours.
- You could lose money as a result of making extra mortgage payments while incurring taxes, insurance and unplanned maintenance costs.
This is why it’s easier to take a cash offer that closes fast with no contingencies!