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Dangers of Overpricing
Your Home
You will lose the excitement that a new listing generates. Most activity on a
listing comes within the first 15 days. An initial high price will discourage
buyers, causing you to miss out on pent up demand.
You will lose the most qualified prospects! The right buyers will not “just
make and offer” because they may never even see your property. They will view
the properties that are priced within their purchase power range, knowing that
they cannot afford anything above their price ceiling.
Over pricing helps sell other, more competitively price homes first. Your home
may be used to demonstrate the good value of other properties. Your objective
should be to enter the market in a position that will attract prospects, not to
drive them away.
Your home may become “stale” on the market. Prospects may wonder why it has
been on the market too long, or if something is wrong with the property, even
after you lower the price. You may even have to settle for less than market
value. A house takes on a reputation surprisingly fast, so don’t wear out your
welcome on the market.
If you do get an offer, the contract may fall through because of appraisal
problems. The lender may not be able to justify the price as it relates to loan
value, consider it a high risk and refuse to lend the buyer mortgage funds.
You lose a strong negotiating position when your home is on the market a long
time, both financially and mentally! Prospects will not “rush” to make an
offer on an over priced property, and you may feel compelled to accept less when
they finally do.
IMPORTANT:
The agent you list your home with cannot set the sales price of your
home any more than your stock broker dictates the price of a stock sale. The
selling price is simply a function of supply and demand. Never let an agent bid
for your listing. Most unsold listings that expire on the market are because of
poor pricing, subjecting the owners to the risks discussed above. Select your
agent on their negotiating ability, their competency and ability to reach the
market. Above all, select someone you trust!
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981-1001