Starting With A Selling Price Too High, Might Think Twice

Starting out with a high sales price and dropping it later, isn’t a recommended practice because your house becomes [old news]. Recapturing that burst of opening activity you would have had with a realistic price is lost, so your house could take much longer to sell.

Even if you were successful in selling at an above market value to an unaware buyer, in most cases the buyer needs a mortgage. The buyer’s lender will require an appraisal; and If comparable homes that sold in the last six months, and market conditions, don’t support the higher sales price, the house won’t appraise, and the deal falls apart.

So then you put your house back on the market. And since your house has now sat on the market awhile, it is much harder to get fair offers than if it was priced right the first time. Dodgy buyers might think you are getting desperate, so they continue to make lower and lower offers.

Due to the overpricing in the very beginning, in many instances you end up settling for a lesser amount than you might have received if your house was priced more competitively in the beginning.

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