Overpricing
Your home must be priced correctly in order to sell! If it is overpriced, it will be seen only by buyers who can obtain more for their money elsewhere. In other words, a Chevrolet will not sell in a Cadillac showroom. That is not what those buyers are looking for. Neither can you ask $200,000 for a home if the fair market value is only $150,000. The "market" is much too clever for that.
Failing to obtain financing. Even if a buyer can be found who is willing to pay more than fair market value, it may be impossible for the buyer to obtain financing. Mortgages are based on fair market value as determined by an appraiser. Pricing your property competitively will help lead to a sales price that is acceptable to lenders.
Missing peak selling activity. A property generates the most interest among brokers and buyers when it first goes on the market. The number of showings is greatest during this time, if it is priced at realistic market value. Starting too high and dropping the price later misses the excitement and fails to generate as much activity. It may even be necessary to drop the price below fair market value to compete with new, well priced listings.
Taking longer to sell. The higher the price above the realistic market value, the more time it will take to sell.. Pricing your property competitively will help your property sell in the shortest time possible.
Buyers don't make offers on property they consider to be a "poor value". The property will then languish on the market, become perceived as "stale or shop worn" and most likely, will eventually sell for less than fair market value.
Sales associates research properties for clients based upon price ranges. They may miss showing your property to potentially qualified buyers because your home is out of their client's range.
