The High Cost Of Overpricing
Statistics show that overpriced homes remain on the market much longer – and the longer a house is on the market, the lower its eventual selling price is relative to its asking price.
The most critical step in preparing to market a home is determining the right listing price. Of course, every seller – and every agent – shares a goal of getting the highest possible selling price for their home. That’s why Coldwell Banker agents strategically price initial listings for maximum results, and avoid the dangers of overpricing.
The right price produces the best return. Obviously pricing a listing too low will not bring the highest return, but neither will pricing a listing too high.
- When a price is too high, appropriate buyers will often bypass the listing feeling it’s out of their price range.
- Those who are looking in that range may see the property and deem it a poor value.
- Agents may be reluctant to show an overprice property, except perhaps to make a competing one look better.
Can’t I test the market at a higher price? Many sellers are tempted to test a high initial listing price in the hopes of making an exceptional sale. While this might seem like a harmless tactic, it can be very detrimental to the sale of the property, actually driving the eventual sale price down instead of up. Why?
- Properties receive their greatest exposure in the first 3 to 5 weeks.
- Your best prospective buyers will likely see it during this initial period and reject the overpriced listing.
- Most buyers will never return to see a home, even when the price is later reduced.