The Results of Over-Pricing

Many sellers believe that if they price their home high initially, they can always lower it later on. Often when a home is priced too high, it experiences very little activity. Gradually the price comes down to market value, but by that time, it has been for sale for far too long and Buyers are weary.  

On occasion, the price is dropped below market value because the Seller gets anxious and the property sells for less than it is worth.  

The Consequences of Over-Pricing

It’s a common misconception among sellers that starting with a high price allows room for negotiation later. However, when a home is initially priced too high, it often sees minimal interest from potential buyers. As time passes and the price is gradually reduced to align with market value, the property may have languished on the market for too long, leading buyers to become wary.

In some cases, the seller’s anxiety prompts a significant reduction in price, ultimately resulting in the property selling below its true market worth. It’s crucial for sellers to recognize the potential pitfalls of over-pricing and work with their real estate agent to set a competitive and realistic price from the outset. This approach ensures optimal buyer interest and maximizes the chances of achieving the best possible sale price.

The importance of early activity

As soon as a home is listed on the market, there is a flurry of activity surrounding it.

This time is a crucial time when Sales Representatives and potential buyers take notice.

If the home is overpriced, it doesn’t take long for interested parties to change their minds and steer clear.

Highlighting the significance of early activity

The moment a home hits the market, it generates immediate interest and attention from both sales representatives and potential buyers. This initial period is critical, as it sets the tone for the listing’s success.

However, if the home is overpriced, it’s only a matter of time before interested parties lose enthusiasm and opt to pursue other options. This underscores the importance of pricing a home competitively from the start, ensuring that it captures the attention of buyers during this crucial early phase. By setting the right price, sellers can maximize interest and increase the likelihood of securing a swift and successful sale.