Serious buyers look in the price range determined by their down payment and monthly payment ability. When buyers enter the market place, they give their real estate agent their criteria and the price range in which they are pre-approved to buy. Their agent does a computer search for them and gives them all the homes in their price range that meet their criteria.
If you are overpriced, you may get some buyers to visit your home. The buyers will compare your home to the amenities they can get in other homes in the same price range and essentially you’ll be helping to sell the other homes. Buyers are shopping for the best deal and the most amenities they can get for their buying dollars.
The real estate agents that visit your over priced property will go back to their offices and tell all the other agents in their office that your property is overpriced and not to waste their buyers’ time by showing it to them.
Whenever a potential buyer asks about your property, those agents will tell the buyers that you’re overpriced, but they know of some other homes that are priced correctly and thye will sell them one of those homes instead of yours. Those houses will sell while you sit on the market week after week and month after month.
The National Association of Realtors statistics reports show that houses sell faster and for more money during the first few weeks of the listing. The longer you sit on the market, the less money you’ll receive for your property.
A buyer who is seriously looking for a home soon becomes a very knowledgeable in his price range. An unreasonable asking price only discourages the buyer from visiting your home and considering your home for purchase.
Buyers purchase by comparison and a property priced above the competition does not compare favorably. It’s very difficult to obtain a reasonable offer on an overpriced property.
It is a mistake to believe that you will get more for a property by asking more than the fair market value. You will get less because fewer buyers will consider buying your property.
The correct buyers will not see it because you’re not listed in their price range. Your property will sit on the market and get stale. Buyers will wonder why your home has not sold.
You actually end up with less money by over pricing your property. Plus, you will continue to make payments on a property that you no longer want. Price it right in the beginning and get more cash in your pocket.