Everything You Need to Know to Sell Your Home! Dec. 2015 | Page 30

DRAWBACKS OF OVERPRICING
 REDUCES ACTIVITY: Agents won’t show the property if
they feel it is priced too high.

 LOWER ADVERTISING RESPONSE: Buyer excitement
will be with other properties that offer better value.

 LOSS OF INTERESTED BUYERS: The property will
seem inferior in amenities to other properties in the same price
range that are correctly priced.

 ATTRACTS THE WRONG PROSPECTS: Serious
buyers will feel that they should be getting more for their money.

 HELPS THE COMPETITION: The high price makes the
others look like a good deal.

 ELIMINATES OFFERS: Since a fair priced offer will be
lower than asking price and may insult the seller, many buyers will
just move on to another property.

 CAUSES APPRAISAL PROBLEMS: Appraisers must
base their value on what comparable properties have sold for.

 LOWER NET PROCEEDS: Most of the time an overpriced
property will eventually end up selling for less than if it had been
properly priced to begin with, not to mention the extra carrying
costs.