The 4 Dangers of Pricing Too High

Price is the most important element when selling a home. You don't want to price too low because you'll leave money on the table. You also don't want to price too high because you could scare away buyers.

A lot of sellers think that if you price high in the first days on the market you leave room for negotiations. While this seems like a good theory, there are actually four downfalls. Did you know that overpricing your home by as little as 5 percent can reduce your chances of selling by 90 percent? Why?
  1. Potential buyers won't see your home - If you price too high, your home won't show up on a price range search for many buyers. You eliminated a large amount of potential buyers. 
  2. Your home sits on the market longer - Once a home has been on the market for so many weeks, a stigma is developed: what's wrong with your home? Why doesn't anyone want it? 
  3. You get the reputation as an unrealistic seller - Buyers won't want to work with you if they think your expectations are unrealistic. 
  4. You will have to price reduce - To make up for the time on the market, you will have to reduce your price to entice buyers.
What if you priced your home correctly in the first place? If you price reasonably in the first place, most of the time you will get multiple offers. Then there is an auction for your home and many times you get more than you asked for originally.

If you are having trouble determining which is the best price for your home, give me a call. Let's figure out what's best for you. Thanks for watching!