Home Sellers – The Dangers of overpricing your home

When I meet with sellers to sell your home many times I've heard the strategy of setting the initial asking price high and then descend in price if not sold. This is not really a good idea in a traditional real estate market.

In recent years the sellers in Sarasota, Fla., were made through this strategy of inclusion of their property with high sales. Sarasota succeeded because, as in other parts of the country was in an extreme market vendors. Our prices were continually going above the last sale price. Now that the market has cooled a bit, you need to change strategies when deciding on a price.

If you start with too high a price, then later decide to leave your home has lost that initial wave of new advertising activity which normally receive. This strategy could hurt your chances of selling your home quickly.

I think home sellers want to try this strategy in hopes of finding a buyer with no education. Our real estate markets have become very efficient. Real estate information is readily available and moves quickly. About 3 out of 4 buyers begin their search on the Internet. Buyers today are smarter and more educated. The properties in the MLS and most buyers have access to these lists quickly. The possibilities of pricing your home too high and selling it to a buyer without education is slim.

Let's say you high price of his house and then drop the price. Once your house has been on the market for a while it becomes stale and is more difficult to get a good deal. Potential buyers always ask how long a home has been on the market. If they see that it was a time in the market that will make lower offers. By overpricing your home in the beginning, you may actually end up settling for a lower price than you would normally have received.