7 Deadly Sins of Overpricing
1. Appraisal Problems
Even if you do find a buyer willing to pay an inflated price, the fact is over 90% of buyers use financing to pay for their home purchase. If your home won't appraise for the purchase price, the sale will likely fail.
2. No Showings
Today's sophisticated buyers are well educated about the real estate market. If your home is overpriced, they will probably avoid scheduling a showing and worse yet... never prepare an offer for your review.
3. Branding Problems
When a new listing hits the market, every agent quickly checks the property to see if is a good fit for their clients. If your home is branded as 'overpriced', it will be overlooked in the showing process.
4. Selling the Competition
Overpricing helps sell your competition! Your pricing makes the competition seem like a bargain. Nothing is worse than watching your neighbors put up a SOLD sign.
The longer your home sits on the market, the more likely it is to become stigmatized or stale. Have you ever seen a house that seems to be perpetually for sale and wondered what is wrong with that house?
6. Tougher Negotiations
Buyers who are interested in your property may negotiate harder because the house has been on the market for a longer period of time.
7. Lost Opportunities
You may lose potential buyers who are looking in a specific price range because your price is above their preset limit. Most buyers look at 10 - 15 homes before buying, so it is important to be price competitive.