CONSEQUENCES OF OVERPRICING It takes longer to sell your home •This can cost you thousands of dollars in additional mortgage payments, taxes, etc., as well as the emotional toll that comes with waiting. •The longer a home is on the market, the more likely you will receive “low-ball” offers because there is an assumption that there are problems with the home. Help sell other properties in your area. •The other properly priced homes will appear to be “better deals.” Hard for Buyers to attain financing •Lenders base loans on the lower of appraised value or purchase price. Any difference must be covered in cash. Little to no activity •Real Estate Agents DO NOT like to show overpriced properties. •The longer the home is “on the market”, the less appeal it generates. Well-priced properties generate immediate interest amongst Buyer and Agents. If the price is too high, that excitement never happens. •To generate interest, the price must drop below the competition. Put simply…If the home is overpriced, the right Buyers won’t see it, and the higher priced Buyers won’t want it!
Posted on: Sun, 18 Aug 2013 19:46:25 +0000
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