by because the home is out of their price range or out of kilter in the market area. By the time you decide to lower the price, they have moved on to other properties. As your home sits on the market, buyers will wonder why the home has not sold and conclude that it’s undesirable in some way. Price it correctly from the start to generate interest and gain attention from buyers to sell faster. Unrealistic pricing costs money in the long run.
Un-rushed High Pricing
Even if you’re not in a hurry to sell, it’s not a wise move to test the market by listing your home at a high price to “see how it goes.” Serious home shoppers may take months to find a new home. They are continually looking for new listings — not ones that have been languishing on the market. Thinking that the market will turn in your favor may not be reliable either. If prices in your area are dropping, you may lose money. By pricing your home based on current market values, you can sell your home more quickly and for more money.
Price Dropping
Another pricing trap to avoid is listing your home far above other homes in the area only to drop the price if it does not sell for that price after a certain period, such as three months. That may be potentially workable in a stable or increasing market. However, if you wait for the market to "catch up" to you, you can end up with longer days on the market which gives a stigma, although falsely, that there must be something wrong with the home. If the market in your area is declining, you may be forced to reduce the price even more drastically to catch up to the falling market and again risk longer days on the market further stigmatizing your property.
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