Let’s list high, we can always come down later

We can always come down laterMany home sellers fear parting with their property for less than its highest potential, so look at pricing with the idea that they should start a little high so that either there’s “negotiating room” or so that they can bring it down later if it doesn’t sell.  The thinking is that waiting won’t hurt their ultimate sales price.

That’s a mistake.

What does happen is that there won’t be a “room to negotiate” issue if the house is overpriced because there won’t be any offers at all.  If it’s really, really high, there won’t be many showings, either.   There are many studies demonstrating that homes listed or offered at a too-high price languish on the market and eventually need to be reduced very significantly to get it sold at all, with the eventual sales price below what would have been an attainable probable buyer’s value (or sales price) had it come onto the MLS with realistic pricing.

In other words, testing the market with the risky practice of overpricing  is usually counter-productive to the home seller’s goal of selling the home for the highest price possible.   (more…)