Seven Deadly Sins of Overpricing

Seven Deadly Sins of Over Pricing

Overpricing your home can have several consequencesto your potential buyers. it can limit the number of potential buyers who can't afford your home, reduce showings, and create an impression in the marketplace that homeowners aren't serious about selling their home. The last pitfall to overpricing is the beginning of homeowners reducing their price several times trying to catch up to the real market value. Let us take a look at the seven deadly sins of overpricing your home.

1. Appraisal Problems- Say you do find a buyer willing to pay the inflated price; the truth is over 90% of buyers use some type of financing to pay for their home purchase. The sale will most likely fail if the home won't appriase for the purchase price.

2. NO Showings- People looking to buy homes aren't idiots. they are familiar with the real estate market and will not even bother to look at a house much less make an offer if they know the price is too high.

3. Branding Problems- When every agent in the city finds that brand new listing to see if it is a good fit for their clients; the 'overpriced' brand takes a lot of extra effort to reignite interest in the property.

4. Selling the Competition- Low prices appear as bargains, but nothing is worse than watching your neighbor put up a 'Sold' sign right next to your 'For Sale' sign.

5. Stagnation- The longer a home sits on the market, the more it looks like it's stale. Do you ever notice a home that been for sale forever? Do you ever wonder what is wrong with that home? That house could be your house if it is overpriced.

6. Tougher Negotiations- Difficult negotiations may come about because the home has been on the market for so longand because it is overpriced compared to the competition.

7. Lost oppritunities- Being overpriced is gaurenteed to lose a percentage of potential buyers who are outside of your price. These are buyers who are considering your ballpark price, but in the end can't afford it because it is just not in their budget.

Most buyers will look at 8-20 homes before making a decision. Setting a competitive price relative to the competition is a key marketing strategy if you want to get your home sold.

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