Dangers of Overpricing
- Fewer buyers are attracted, and fewer offers are received.
- Marketing is prolonged, and initial marketing momentum is lost.
- The property attracts "lookers" and helps competing houses look better by comparison.
- If a property does sell above true market value, it may not appraise, and the buyers may not be able to secure a loan.
- The property may eventually sell below market value.
Summary: As your asking price decreases, the number of buyers who will view your property increases. If you are trying to sell your property in a tough real estate market (high inventory, low demand), consider pricing it at 10% to 15% below comparable properties. It is better to price your house competitively initially rather than gradually reducing the price later because a property receives more attention when it first lists on the market.