Consequences of Over Pricing Your Home

Wiggle room, we’ve all heard it. “If I price the house at that price there won’t be any wiggle room”. We live in an age of the educated consumer and nowhere is it more apparent than real estate. Today’s buyers have looked at 150 houses on line, visited 100 open houses, and have made appointments at another 20. They know value and that is what they are looking for. Price a home correctly and it will sell for more money than if you price it with wiggle room. An incorrectly priced property is advertising for another home. Your property makes the competition look better, you are in fact helping to sell your competition.
Fewer Realtors will show your property, fewer buyers will come to your open house, but you may succeed in receiving a low ball offer.
If a buyer does in fact buy your property at an inflated price, the mortgage may be in jeopardy because the bank may not appraise the property at that price. One of two things will happen, the buyer will walk or you will accept the appraisal price. Either way, critical time was lost waiting for finance approvals that do not go through.
Reducing the price after buyers have perceived your house as “overpriced” does not generate nearly as much interest as it would if it were priced correctly from the start.
The first 10 days a home is on the market brings in the most ready willing and able buyers. So please, leave out the wiggle room, price to coincide with the window of maximum exposure and buyer interest. Price to get buyers excited!

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