THE SEVEN DEADLY SINS OF OVERPRICING

overpricing

If you are serious about selling your home, avoid the temptation to overprice. Why? Here are seven great reasons.

  1. Even if you do find a buyer willing to pay an inflated price, fact is that over 90% of buyers use some kind of financing to pay for their home. If your home won't appraise for the purchase price, the bank’s valuation will not be sufficient and the sale will likely fail.
  2. Today's sophisticated home buyers are well educated about the real estate market, so if your home is overpriced they won't bother looking at it, let alone make an offer.
  3. When a new listing hits the market, every agent quickly checks out the property to see if it's a good fit for their clients. If your home is branded as "overpriced", reigniting interest may take drastic measures.
  4. Overpricing helps your competition. How? You make their lower prices seem like bargains.
  5. The longer your home sits on the market the more likely it is to become stigmatized or stale. Have you ever seen a property that seems perpetually for sale? Do you ever wonder what’s wrong with it?
  6. Buyers who do view your home may negotiate harder because it has been on the market for an extended period. They’ll assume they can beat you down to a bargain price.
  7. You will lose a large percentage of buyers who are outside of your price point - buyers who are looking in the price range that your home is worth, but don't view it because you are above their pre-set budget.