7 Deadly Sins of Overpricing

How to avoid overpricing mistakes

“We can always go down, but we can’t go up.”

Have you ever heard or said that?

Most experts would advise that the best way to increase your odds of a successful sale is to price your home at fair market value. But for many sellers, it’s still tempting to tack a few percentage points onto the price to “leave room to negotiate”.

Here are some tips on how to avoid common overpricing mistakes by staying away from the seven deadly sins of overpricing:

1. Appraisal Problems

If your home won’t appraise for the purchase price, the sale will likely fail.

2. No Showings

If your home is overpriced, today’s sophisticated home buyers won’t bother looking at it, let alone make you an offer.

3. Branding Problems

If your home is branded as “overpriced”, reigniting interest may take drastic measures.

4. Selling the Competition

Overpricing helps your competition by making their lower prices seem like bargains.

5. Stagnation

The longer your home sits on the market, the more likely it is to become stigmatized or stale.

6. Tougher Negotiations

Buyers who do view your home may negotiate harder because the home has been on the market for a longer period of time and because it is overpriced compared to the competition.

7. Lost Opportunities

You will lose a percentage of buyers who are looking in the price range that the home will eventually sell for but don’t see the home because the price is currently above their pre-set budget.

Click here to read the original article on Trulia.com.