Price it Right
The only reason a home does not sell is price. Since you will generally have the most showing activity during the first 30 to 45 days, it's important to be priced competitively. Prospective purchasers do comparison shopping and are aware fo the value of available homes. If potential buyers feel the price is too high, they'll move on to the next one. Price can overcome objections to location and condition.
Consequences of Overpricing
The strategy of overpricing your property -- knowing that you can reduce the price later -- might make sense at first glance. However, it seldom works. In fact, sellers who overprice their properties -- even just 10% above market value --
often end getting less than they would if they had priced it properly from the start.
Here is why:
- A high price on your property makes other comparable properties more attractive, so you actually help to sell your competition.
- Fewer buyers will respond to ads, fewer agents will show your property to their buyer clients, and you’ll get fewer serious offers.
- Inflated prices often lead to mortgage rejections and critical lost time waiting for finance approvals that don’t go through.
- Reducing the price after buyers have begun to perceive your home as a "stale" listing will not generate nearly as much interest as if you'd priced it properly from the start.
This is why rightly pricing your property to coincide with its window of maximum market exposure and buyer interest is so important.