Overpriced Property - Fails to compete
with other homes on the market. Buyers look at many properties and
eliminate by comparison. Your home may help sell others.
Overpriced Property - Fails to meet
the Buyer’s expectations. People have certain expectations for a certain
price and become disinterested when a property does not meet their
criteria. When looking at homes, have you ever been disappointed in
what you saw?
Overpriced Property - Remains unsold
for a long time causing Buyers to be wary even making a lower offer.
How would you feel if you saw a home on the market for 45 days?
Overpriced Property - Can turn a
Buyer from one area to another. Someone qualified to buy in your location
may disqualify themselves if confronted with even one or two overpriced
homes. A qualified Buyer may never see an overpriced home because
they feel they can’t afford it.
Overpriced Property - Can ultimately
cause a monetary loss. Consider your holding cost for six months to
1 year. The market may come up to your price in that time, but you’ve
already invested more, plus you may be running the risk of becoming
known as overpriced. It is important to calculate your cost of ownership
Overpriced Property - Reduces advertising
response. A Realtor who repeatedly advertises an overpriced property
soon becomes known as a poor merchandiser. Would you respond to an
ad for an overpriced home?
Overpriced Property - Causes sales
people to lose enthusiasm. A few unfavourable reactions from Buyers
and they will discontinue showing your home. Loss of promotion. It
is human nature to avoid something that is overvalued.
Overpriced Property - Makes it difficult
for a Realtor to build a sound business. Clients soon lose respect
for the office whose inventory is overpriced. This causes loss of
the Buyer base necessary for exposure.