Why pricing the home competitive, based on current listing inventory will net you more, and will sell the house faster.
Minimize Offers - An overpriced house discourages prospective buyers from making offers since the difference between the asking price and the market price is substantial.
Less Qualified Buyer Exposure - Overpriced houses fail to attract qualified buyers, or attract “wrong” buyers.
Decline in Showings - Realtors avoid showing overpriced houses in order not to lose credibility with their buyers.
Prospects from Sign Calls - Prospects who learn about the house from the sign get turned off if it is overpriced.
Limits Financing - Financial institutions and mortgage companies finance only a percentage of real value of the house. If the house is overpriced, they usually will finance a lower percentage, thus reducing the availability of financing.
Less for Seller - Eventually market interest in the overpriced property declines. Seller is willing to negotiate lower and they bear maintenance and holding costs. The result is the seller nets less than originally anticipated.
Shown to Sell, not Just Compare - Prospects are shown competitively priced houses by their agent with the intention of buying the house not to compare with the other correctly priced properties in the neighborhood.
Faster Sale - Competitively priced houses sell much faster than those that are overpriced do. Rarely will a house priced competitively end up an expired listing.
Ultimately Higher Price - A house that sells in the first 30 days will bring the highest sales price and that amount will decline as time passes.