Why would a Seller overprice their home?
I was asked this question today from a buyer wanting to buy a home in the Tualatin area. They were wondering why a seller would have their home priced much higher than other homes in the same neighborhood especially after it's been on the market for a long time?
When it comes to putting a home on the market, a seller has choices, but if they truly want to sell their home, they will work with a REALTOR® that will give them an honest opinion on pricing as well as other things to do to the home that will make it shine when it comes time to marketing the home..and ultimately SELLING the home.
My answer was that it most always comes down to motivation. When a seller sees the comparables, and still chooses to list higher "to test the market" or wait for that right buyer that loves it enough to pay more than others that have sold in their neighborhood, they are not motivated to sell.
Perhaps they really don't need to move...but are just waiting for that buyer from California who thinks $400,000 is peanuts. Perhaps, they put in some updates and feel that a buyer will happily pay for them...even though the other homes priced $30,000 below have updates as well. Even if a buyer will happily pay for them...there is always the appraisor that will be coming by to use those same comparables that the realtor showed the seller at the start.
Of course as a buyer, you'll never really know the motivation of the seller unless you submit an offer. Only then will the seller have something tangible in front of them and perhaps in that moment their motivation has changed.
Why would a seller overprice their home? Motivation...or lack thereof.