Let's say you decide to price your property at $180,000 even though your Realtor suggested a more realisic asking price would be $172,000 based on a current market analysis. Because your home has great curb appeal, it does get a lot of interest from online advertising and your agent has received numerous calls asking for more information about the property, none of which has resulted in a showing.
After 5 months you finally decide to price the home at $172,000 as your agent suggested when you first listed it. Interest has dropped off, there are no calls coming in and there are still no showings.
Why did the interest drop off and why are there no more sign calls?
Every buyer that is driving around looking for real estate signs knows your property is priced at $180,000 and they didn't bother calling again to ask if the price has been reduced.
None of the online advertising is generating interest either because this is a declining market, and while you have reduced to $172,000, you did so 5 months too late. You are still priced above the market because the market has declined within the last 5 months. Your agent provides you with a new market analysis, which suggests a range between $168,000 and $162,000. You reduce the price to $165,000 and finally sell for $163,000, $9,000 less that you could have sold for 5 months ago.
It's the Price You Pay for Overpricing!
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