4 Problems of Overpricing

Price Problem #1: Where's the Excitement?

The first problem is... it's hard to get sales people excited.  

And it doesn't make any difference how much marketing you're doing... the problem is the same ... its hard to get sales people excited.

You see ... agents generally know what buyers are willing to pay for similar homes in similar areas in this market right now. 

And when a house is sitting on the market for any length of time not selling, their reaction might be that it's overpriced.  

They won't get excited because they know they can't get their buyers excited.

On the other hand ... when your price your home competitively ... this is what happens:

Agents get excited because they know they can get their buyers excited. 

Excitement is contagious. 

So is apathy. 

You have to ask yourself:

Which emotion am I generating?  Excitement or apathy?

Price Problem #2: Showings.  What Showings?

The second problem is... it's hard to get good buyers to look. 

Serious, qualified buyers don't want to spend time looking at over-priced houses.

They'd prefer find good deals in the foreclosure market or deal with motivated, competitively priced sellers.

You have to ask yourself:

Am I getting good showing activity?  At least 1 showing a week?

Price Problem #3: Why isn't anybody making an offer?

The third problem is -- even if you can get buyers to look -- it's hard to get an offer.

Serious, qualified buyers don't want to tie up their deposit money for even one day on what they think is a hopeless cause or long, drawn-out negotiating procedure. 

Its too much trouble and their agent is telling them that. 

You really want to be sure you're not presenting a price that appears like a difficult negotiation to the agents and buyers out there.

You have to ask yourself: 

Am I getting offers?  If not, why not?

Price Problem #4: What do you mean it didn't appraise?

The fourth problem is it's hard to get financing on real estate right now. 

Even if you find a buyer willing to pay a certain price for your home, it can be difficult to find a lender offering financing that can make it happen.

You see ... a lender will have your home appraised and they know what buyers have been willing to pay for similar homes in similar areas in this current market.

Most lenders are willing to finance 80% to 95% of "market value", but not on an inflated price.  

This has become a real problem in today's market as you have surrounding homes that are selling at discounts or foreclosures that are sometimes selling for 60% to 70% of market value.

You have to ask yourself: 

Will my home appraise for the price I want?