Most experts would advise that the best way to increase your odds of a successful sale

is to price your home at fair market value. But, as logical as this advice sounds, for many

sellers it is still tempting to tack a few percentage points on to the price to “ leave room

to negotiate.” To avoid this temptation, let’s take a look at overpricing:



Even if you do find a buyer willing to pay an inflated price, the fact is over 90% of

buyers use some kind of financing to pay for their home purchase. If your home

won’t appraise for the purchase price, the sale will likely fail.



Todays sophisticated home buyers are well educated about the real estate market. If

your home is overpriced, they won’t bother looking at it, let alone make you an offer.



When a new listing hits the market, every agent quickly checks the property out to

see if it’s a good fit for their clients. If your home is branded as “ overpriced ,“

reigniting interest may take drastic measures.



Overpricing helps your competition. How? You make their lower prices seem like

bargains. Nothing is worse than watching your neighbors put up a sold sign.



The longer your home sits on the market, the more likely it is to become stigmatized

or stale. Have you ever seen a property that seems to be perpetually for sale? Do

you ever wonder what’s wrong with that house?



Buyers who do view your home may negotiate harder because the home has been on the

market for a longer period of time and because it is overpriced compared to the competition.



You will lose a percentage of buyers who are outside of your price point. There are buyers

who are looking in the price range that home the will eventually sell for but don’t see the

home because the price is above their pre-set budget. Most buyers look at 10 to 15 homes

before making a buying decision. Because of this, setting a competitive price relative to

the competition is an essential component to a successful marketing strategy.