When it's time to sell your home or condo , it's very easy to get caught in the overpricing trap. After all, who doesn’t want top price for their home? We all know that prices have dropped dramatically in recent years. Given that, it's logical that the asking price you set could be higher than "fair market value." Unfortunately, you probably won't realize it's too high until much later.
Here are just a few of the disappointments you'll be facing with an overpriced house:
Showings of your home will probably be slow. The public recognizes overpricing. People buy by comparison. They compare square feet, bedrooms, baths, garages, year home was built, location, etc.
Some prospects who are attracted may be the wrong ones. They will be attracted because they're looking for a home priced the same as yours – but are disappointed because they expect more features or high quality amenities.
Very few buyers will make an offer on an overpriced home. Why? Even if you accept their lower offer, they aren't getting a bargain since the final price is probably no less than "fair market value."
Your home will help buyers make a favorable decision on other homes that are priced fairly. Do you really want to be the example that drives people elsewhere?
If you do find a buyer at your price, their mortgage application could be rejected because it doesn’t appraisal to the price you have set; the house simply doesn't meet the standards that the price indicates.
I know this all sounds somewhat bleak, so what can you do to solve the pricing issue? Work with an experienced and knowledgeable professional who knows the market in your area. Take advantage of the research and advice your real estate agent can offer, and you'll be on your way to setting the right price for your home to sell.