Home Sellers - The Dangers of Overpricing Your Home

When I meet with sellers about listing their home oftenI think home sellers want to try this strategy hoping to
times I hear the strategy of setting the initial askingfind an uneducated buyer. Our real estate markets
price high and then coming down in price if it does nothave become very efficient. Real estate information is
sell. This is really not a good idea in a traditional realeasy to get and it travels quickly. About 3 out of 4
estate market.buyers start their home search on the internet. Today's
Over the last few years sellers in Sarasota, Floridabuyers are more savvy and are more educated.
were successful using this strategy of listing theirProperties are listed on the MLS and most buyers
property with a high sales. They were successfulhave access to these listings quickly. The chances of
because Sarasota like other parts of the country waspricing your home very high and selling it to an
in an extreme sellers market. Our prices wereuneducated buyer is slim.
continually going above the most recent sales price.Lets say you do price your home high and later lower
Now that the market has cooled off a little bit it isthe price. Once your home has been on the market
necessary to change strategies when deciding on anawhile it becomes stale and is harder to get a good
asking price.offer. Potential buyers always ask how long a home
If you start out with too high of a sales price, thenhas been on the market. If they see it has been on the
decide to drop it later your house has lost that initialmarket awhile they will make lower offers. By
flurry of activity that new listings typically get. Thisoverpricing your home in the beginning, you could
strategy could hurt your chances of selling your homeactually end up settling for a lower price than you
quickly.would have normally received.