Is there any harm in a seller overpricing their property, and then dropping the price if it does not sell?
The answer is usually "yes." A high price conveys the message that the seller may not really be interested in selling. And, when a home is priced too high,
agents and buyers usually just cross it off their list and move on. After all, there are plenty of other listings.
Of course, deciding the value of a home isn't an exact science, so it is understandable that a seller
might put their home on the market with an asking price that is on the high side. Additionally, most of us believe that our homes are really "worth more" than the one down the block, around the corner or next
door that was just sold. And, if we are wrong, we can always drop it later, can't we? Yes, but by then, the seller may have not only lost potential buyers, but also they may have driven away interested Realtors; and
Realtors are the prime source of buyers. They bring the buyers by to your home.
When a property is put up for sale, the first 30 days are the most critical. Statistics show that's when most buyers and Realtors see the
property. Interest is high! But, the longer the property is on the market, the fewer the prospects and Realtors. Thus, the initial period is critical - along with the proper pricing.
Some sellers, however, believe
that if someone is really interested they will counter offer. Some will, many won't! Some well-qualified buyers may just walk away. The bottom line is a high priced listing will turn many buyers off.
Still, a seller
wants to be confident s/he is getting the best price for his/her home. The way to accomplish this is by talking to a real estate agent before listing the property. Ask for a comparative market analysis - that is,
research what similar homes in the area have sold for recently. Compare your property to those and have the agent help you calculate a fair market value. Be objective - even though it is your home. Remember, an over
priced listing will usually result in only one thing - an unsold property.