You'll Help Sell the Competition. The "correctly priced" homes look even better if yours is overpriced. Most buyers are competitive shoppers.
Your Home Will Stay on the Market a Long Time. Did you know that 80% of your potential buyers will see your house in the first four to six weeks? If you don't sell them then, it takes approximately three months to replace them with an equal number of newcomers.
You'll Lose Market Interest and Qualified Buyers. Serious buyers use the value, quality and price of similar properties as deciding factors. Ultimately, the offers you get will be considerably less.
A Negative Impression is Created. People will wonder why your house is still on the market - they'll believe something is wrong with your home. The goal is to price it right in the beginning!
You (The Seller) Would Lose Money. You may have to make extra mortgage payments as well as incur taxes, insurance and unplanned maintenance costs.
You (The Seller) May Have to Accept Less Money. Studies show that the longer a house is on the market, the greater the discount off the list price. Often a seller will accept less than fair market value in order to sell because of an approaching deadline.
There is the Potential for Appraisal Problems. The appraiser from your buyer's lending institution must agree that the home is worth the agreed price. If the appraiser believes the price is inflated, the loan may not be approved. Again, lost time = lost money.
It is critical that the pricing of the home is backed by current comparables and that you heed the advice of your trusted Realtor@.