The Raines Group Buyer & Seller Guides Seller Guide March 2014 | Page 12

PRELISTING BOOK \ Marketing

THE DANGERS
OF OVERPRICING
It may be tempting to price high at the outset to try to beat the market. However, the soundest strategy is
to price your home correctly from the start. Here are some reasons why.
Buyers are always waiting for
something new to be listed.
The most activity and the highest and
best offers typically come in the first 21
days a home is on the market. So if you
overprice your home and then reduce the
price, you lose precious time as well as the
excitement that a new listing generates.

A house takes on a reputation
surprisingly fast.
Even after you lower the price,
prospective buyers may be wary,
wondering why your home has been on
the market so long. You have lost a strong
negotiating position and, in the end, may
even have to settle for less than market
value. That’s why it is so important to
make the most of your entry into the
market.

The higher your home
is priced, the fewer qualified
prospects you will attract.
Buyers compare houses. They are looking
for the home with the most amenities at
the best price. But instead of making an
offer on your home, these buyers are out
viewing others that they perceive to fall
within their price range. By overpricing,
you are actually helping to sell other, more
competitively priced homes. You are
highlighting their value at your own
expense.

R A I N E S R E S U LT S . P R O V E N S O L U T I O N S F O R S E L L I N G Y O U R H O M E

A disparity between your asking
price and your home’s appraisal
value can quickly become a dealbreaker.
We must be able to defend your price to
the appraiser, and the lender must be able
to justify it to the market. If your home’s
appraisal value is lower than your asking
price, your buyer could back out at the
last minute.