The Problems with an Overpriced Home
The
following are problems a vendor faces when starting with a price too high for
the current market (overpriced home).
1. Price high to test the market
The
purchasers as well as the realtors may not look at the home if it does not fall
into the price range for comparable homes. This
is more noticeable in a buyer’s market when there are a large number of
listings available.
2. Something wrong with the house syndrome
A
listing can wear out if it has been on the market too long. Purchasers and
realtors often feel there are problems with the house and will not show it.
3. Target listing
Realtors
will show your overpriced listing to make a comparable listing look better. You
may get excited about all of the showings but discouraged when there are no
offers. The natural person to blame is
the realtor!
4. Holding cost
The longer a property is on the market the
more the vendors holding costs increase. This can be very expensive on a
revenue property if there are vacancies.
5. Purchasers market knowledge
Some vendors feel that a high price will fool
the Purchasers; (not so!). Today’s buyers are very aware of market conditions
and will not be fooled by an overpriced home. The purchaser knows about a
specific price range of homes since they have been concentrating on that range
for some time.
SECRET TO SUCCESS? PRICE
YOUR PROPERTY PROMPTLY!