• Exposure is what sells a home. Experienced agents recognize overpriced listings and don't waste time showing them.
• The excitement of a new listing is lost to the overpriced home, and unfortunately, never regained.
• The potential buyer that calls in for information on an overpriced home will hang up, lose interest, or ask about other properties.
• Fewer showings mean a longer time on the market. This causes people to wonder what is wrong with the home and, very often, it will be avoided.
• Most homes that start out overpriced sell for less than what they were worth to begin with. Successive price reductions cause people to wait and see - and the price will finally be significantly reduced to attract the attention of buyers and agents. I have seen this unfortunate situation too many times over the years.
• An overpriced listing often attracts the "lone eagle" buyer who knows he is the only bid. This affords the buyer the opportunity to take control of the situation. More reasonable pricing, however, can attract multiple offers (competitive bidding may push the price higher).
• Comparative shopping is definitely the rule, not the exception! When people compare the asking price of your home with other homes on the market, your overpricing will only help sell your competition.
• With the advent of buyer agency in Illinois (where the selling agent works for the benefit of the buyer), the agent will likely perform a market analysis of the property. This will help the buyer determine a price to offer. Rarely will a buyer determine his offering price based solely on the list price.
• A property must "appraise out". The lending agency is not interested in financing a home that is worth less than the agreed upon purchase price.

©2002 Marge Harris. Publication or use of this article on or off-line without written permission from Marge Harris is prohibited. If you would like to use Marge's articles on your Web site or in your publication, just email Marge for details!

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