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1.
Multiple Listing Services (MLS)
Computer searches are selected by
price range the buyer can afford.
If your price is above market
value, you home will not even be
selected and you lose the
positive impact of the “New on
the market” advantage, thereby
losing prime selling time.
2. Overpricing helps sell other,
more competitively priced homes
first. Your home may be
used to demonstrate the good
value of other properties with
better amenities than yours, but
priced the same.
3. You may lose confidence in
your agent and blame them when
your home does not sell. You
complain about poor salesmanship,
failure to report often enough,
too little advertising, not
enough showings, lack of concern.
The real problem is that you
have overpriced your home and the
buyers do not see value.
4. Buyers concentrate on
objections and minimize good
features of the home. Buyers
always ask how long a home has
been on the market. Over
time, your home becomes stale and
buyers get confused and wonder
what’s wrong with it, even if you
lower the price. They go on to
look for a better deal.
5. Sales Associates lose
enthusiasm about showing
properties that Buyers reject due
to price. They prefer showing
homes where their chances of
selling are better.
6. You place yourself in a poor
position to obtain maximum dollar
since the property can become
"long on the market". You loose
a strong negotiating position and
may end up settling for less than
market price.
7. Appraisals are required on
all new loans. The
appraised value is based on the
recent sales price of similar
properties. If your home is
overpriced, the appraisal may
fall short of the offer and the
buyer, not willing to pay more
than the appraisal price, will
cancel the offer.
8. Negotiations between Buyers
and you may breakdown when a home
is overpriced because you don’t
know a good offer when one is
presented.
9. The real estate agent
wastes their advertising dollars
and time they could have better
spent with serious sellers.
10. You lose opportunities to
find another home and may incur
additional costs associated with
your home not selling.
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