Price Dropping
Another pricing trap to avoid is listing your home far above other homes in the area, with the intention of dropping the price if it does not sell after three months. That is potentially workable in a stable or increasing market. However, 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. Price competitively from the beginning. Do not hesitate to reevaluate your local market. Work with your real estate agent to determine the fair market value of your home.
THE CONSEQUENCES OF OVER-PRICING
• When a house is priced above market value, it often sits unsold while similar properties attract interested buyers and get sold. • By the time it is repriced to market level, many agents and potential buyers have already dismissed the property, having formed negative impressions about its value. • Reduced interest typically leads to fewer showings, less competition, and ultimately a sale price below what might have been achieved had the property been properly priced from he beginning. You can see that this costs the sellers both time and money.
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