A Listing Agent will market and promote your home to other local agents. This
dramatically increases the sales force. During the first couple of weeks, your home
should be a flurry of activity. First with agents coming to preview your home so they
can sell it to their clients. If the price is right.
If the property is overpriced, fewer agents will bring their buyers to look at your
home. After all, they are professional real estate agents, who know the local market
conditions and home values. Their time is better spent showing homes that are priced
Later when you drop your price, your house is market worn. You will not be able to
recapture the enthusiasm you would have had with a realistic sales price. Your house
could take longer to sell.
If you do sell above market price, the buyer will most likely need a mortgage. The
lender will require an appraisal. If comparable sales and current market conditions do
not support your sales price, then the house will not appraise at the purchase price.
The deal will fall apart, or you will have to renegotiate the purchase price with the
Once the home sits on the market for a while, it is often harder to get a good offer.
Potential buyers may think you are getting desperate and therefore make low offers.
By overpricing your home, you could potentially end up settling for a lower price
than you would have normally received.