Dangers Of Overpricing

March 2, 2022

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In the last few weeks, I have had a few different sellers say that they heard that the best strategy for pricing their home was to start high and then negotiate it down. I emphatically disagree.

Data shows that overpriced homes sit longer and end up for selling less than it would have if it had been priced in-line with other comparable sales. In this short inventory market, you really cannot price a home too low.  Buyers will compete with each other and will push up the price.

But the key is to to attract as many qualified buyers to your home so that you can reap the benefits of multiple offers. If you start with a price that is too high, you will be eliminating a group of buyers that will not even schedule a tour.  And the longer your home sits on the market, the more it encourages buyers to make less desirable offers.  And if you have to do a price reduction, you lose even more leverage in the marketplace.

Listen to your trusted real estate professional on pricing and take a deep dive into the recent comparable sales. This will ensure that you receive a desirable offer(s) and hopefully an offer that exceed your expectations.