In this market it’s more important than ever to price your home well. It is definitely NOT the time to test the market. Some reasons:
1. It reduces activity. Agents won’t show the property if they feel it is priced too high.
2. It lowers advertising response. Buyer excitement will be with other properties that offer better value.
3. It causes a loss of interested buyers. The property will seem inferior in amenities to other properties in the same price range that are correctly priced.
4. It attracts the wrong prospects. Serious buyers will feel that they should be getting more for their money.
5. It eliminates offers. Since a fair priced offer will be lower than asking price and may insult the seller, many buyers will just move on to another property.
6. It causes appraisal problems. Appraisers must base their value on what comparable properties have sold for.
7. Lastly, it lowers net proceeds. Most of the time an overpriced property will eventually end up selling for less than if it had been properly priced to begin with, not to mention the extra carrying costs.
So with this in mind, be sure to price your home right on day one! Happy selling! And for a free, no obligation market analysis to price your home properly, just give me a call.