That’s a strategy that looks good on paper – but, in fact, is more likely to result in a lower price. Here’s why: The first three weeks a house is on the market, the activity is the the greatest. Buyers wait on the sidelines to see the new properties, since they have seen everything else. This pool of buyers is already educated and aware of the market; they already have a “feel” for what a home is worth. These buyers will reject a property that is too high – and they will as a rule not return when the price is lowered, because mentally they have ruled the property out.Secondly, if a house is overpriced, it has to compete with other properties on the market at that price level, and those are almost certainly larger or have newer/more luxurious features. So the overpriced home is unlikely to attract an offer.
Worse yet, those first weeks are when real estate agents preview the house. If it’s overpriced, they may not even bother to show it to their buyers. Eventually, the seller will have to drop the price – and may end up with an even lower price because buyers will wonder why the house has been on the market so long and may factor that into their offer. I will be giving you not only a Market Analysis, but will also be reviewing Market Positioning with you – a unique approach for arriving at a selling price that takes the greater market into account.