Dangers of Overpricing

REALTORĀ® and buyer interest is at its highest when a property is first put on the market. An asking price that is beyond market range can create the following adverse affects:
  • Fewer buyers are attracted, and fewer offers received.
  • Marketing time is prolonged, and initial marketing momentum is lost.
  • The property attracts "lookers" and helps houses competing with yours 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.
  • It may become necessary to adjust the price below market value to compete with new, competitively priced listings. Hence, the property may eventually sell below market value.

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