Appraisal problems- Even if you find a buyer willing to pay an inflated price, the fact is 90% of buyers use some kind of financing to pay for their property purchase. If you property won't appraise for the purchase price, the sale will likely fail.
- Today's sophisticated buyers are well educated about the real estate market. If your property is overpriced they won't bother looking at it and if you can't show it...YOU CAN'T SELL IT!!
- When a new listing hits the market, every agent quickly checks the property out to see if it's a good fit for their clients. If your property is branded as "overpriced", getting interest takes drastic measures.
- Overpricing helps the competition. How? You make their lower prices seem like bargains. Nothing is worse that watching your neighbors put up "SOLD" signs.
- The longer you property sits on the market, the more likely it is to become stigmatized or stale. Have you ever seen a property that seems to be perpetually for sale, and wonder what's wrong with that property.
- Buyers who do view your property may negotiate harder because the property has been on the market for a long period of time and is overpriced compared to the competition.
- you will lose a percentage of buyers who are outside of your price range and refuse to look at your property because of that.