8 Reasons Not to Overprice
8 REASONS NOT TO OVERPRICE
- Overpriced Property – Fails to compete with other homes on the market. Buyers look at many properties and eliminate by comparison. Your home may help sell others.
- Overpriced Property – Fails to meet the Buyer’s expectations. People have certain expectations for a certain price and become disinterested when a property does not meet their criteria. When looking at homes, have you ever been disappointed in what you saw?
- Overpriced Property – Remains unsold for a long time causing Buyers to be wary even making a lower offer. How would you feel if you saw a home on the market for 45 days?
- Overpriced Property – Can turn a Buyer from one area to another. Someone qualified to buy in your location may disqualify themselves if confronted with even one or two overpriced homes. A qualified Buyer may never see an overpriced home because they feel they can’t afford it.
- Overpriced Property – Can ultimately cause a monetary loss. Consider your holding cost for six months to 1 year. The market may come up to your price in that time, but you’ve already invested more, plus you may be running the risk of becoming known as overpriced. It is important to calculate your cost of ownership over time.
- Overpriced Property – Reduces advertising response. A Realtor who repeatedly advertises an overpriced property soon becomes known as a poor merchandiser. Would you respond to an ad for an overpriced home?
- Overpriced Property – Causes sales people to lose enthusiasm. A few unfavourable reactions from Buyers and they will discontinue showing your home. Loss of promotion. It is human nature to avoid something that is overvalue
- Overpriced Property – Makes it difficult for a Realtor to build a sound business. Clients soon lose respect for the office whose inventory is overpriced. This causes loss of the Buyer base necessary for exposure.