10 Dangers of an Overpriced Listing

  1. Sellers lose the positive impact of the newness of their home on the market, and can lose prime selling time.
  2. Buyers concentrate on objections and minimize good features of the home.
  3. Sales associates lose enthusiasm about showing properties that Buyers reject due to price.  They prefer showing homes where their chances of selling are better.
  4. Sellers place themselves in a poor position to obtain maximum dollars, since property can become “shop worn.”
  5. Sellers lose valuable time.  Time is wasted in preparing for showings; families are separated needlessly when an out of town transfer is involved, and school openings are missed.
  6. Sellers lose money in more house payments, utility bills, taxes and insurance.
  7. Buyers become suspicious, thinking that there is something wrong with either the home or the neighborhood, when a home has been on the market too long.  Buyers always ask how long the house has been on the market.
  8. Negotiations between Buyers and Sellers usually break down when a home is overpriced because a Seller does not recognize a good offer when he/she sees one.
  9. Seller loses opportunities to buy another home, or incur additional costs when carrying two mortgages.
  10. Statistically homes that are on the market longer sell for less than fair market value.

Overpriced Listing Statistics:

 

% of Buyers Who Will Look

Percentage listed over fair market value: 10%: $110,000

2%

5% over Fair Market Value:  $105,000

30%

Fair Market Value (F.M.V. ideal pricing!):  $100,000

60%

5% under F.M.V.: $95,000

86%

10% under F.M.V.: $90,000

92%