Every homeowner wants to achieve the maximum price for the property, so listing it a little above the market value can seem like a tempting option. However an article in AOL.com points out that this can backfire.
While there is always the possibility that the property may sell for above market value it doesn’t mean that overpricing it is a good strategy. The article lists several reasons why you should price more reasonably. If there are other similar homes in your area that are listed for a little less then it’s likely that prospective buyers will view these properties as being better value and they may end up getting the sale. In addition, buyers generally know the approximate market values of the properties in a neighborhood and if yours is priced too high then they may not even book a viewing.
Some people like to price a house a little too high because that leaves room for negotiation, but this could also put off prospective buyers who feel it’s out of their price range and who don’t even take a look. While some people appreciate being able to negotiate on the sale price, others prefer to purchase a home that’s priced correctly.
When searching for a good real estate agent, it’s worth getting a few quotes as some sellers are given false hope by agents being somewhat economical with the truth, just because they want to get the listing. There is also the possibility that some agents will want the listing just for the prestige of having something highly priced on the books. It’s better to have a realistic idea of what your property is worth and the likely price it will sell for.
Pricing too high also squanders the first few days when a listing is new and when it’s more likely to get attention from prospective buyers. Ideally, a property will sell within the first few weeks of listing and when this happens it’s more likely to get multiple offers. When a property is priced too high some of this valuable time is wasted as this is when sellers have most leverage over any potential buyers.
When a property has been listed for more than 30 days then buyers start wondering if there is something wrong with it and the listing can quickly become stale. Of course you can always drop the price at this point, but by doing this you may ultimately get less for your property than if you had listed it for a realistic price right from the beginning.