When you decide to sell your home, one of the most important decisions you will make is your initial listing price. Of course you want to get as much money for your home as the market will bear, but asking for a price that is too high can backfire:
Your Buyer Won’t Even See Your Home: That’s right. The perfect buyer for your home is out there but if you are marketing it to the wrong people then the right ones may miss it completely.
Brokers Reaction: The agents in the local marketplace KNOW the market and they will KNOW that your home is overpriced and avoid it like the plague. Or wait for a price drop. If you aren’t getting enough private showings this is probably why.
Buyers Reaction: Even if you do get some buyers into your home you may just be helping them decide to purchase another home! If your price is too high then it will make other homes in the market place will look better by comparison.
Price High Then Drop: The biggest problem with this strategy is that by the time you get down to the right price, agents and buyers are wondering what it wrong with the house. I recently showed a house that has been on the market for almost 3 months with several price drops and my first question to the agent: Why? Turns out that the house has actually received good, market value offers but were refused by the sellers because they were holding out for more money. I didn’t want my buyers to over pay or waste their time with a difficult seller so we moved on to the next one!