Overpricing Can Put Your Home out of the Running

Posted by Liliana Sorescu on Monday, September 16th, 2013 at 7:03pm.

Why do some Vancouver homeowners insist on over pricing their homes?
Usually, it's for one of two reasons:
  • They want to add in a little "wiggle room" because they believe buyers will offer less than the listed price and they want to have room to negotiate.
  • They think that when they list high buyers will simply make an offer – and in the meantime maybe someone will come along and actually pay that higher price.
Unfortunately, the plan usually backfires.
What happens instead is:
  • Buyers' agents use over-priced homes as a comparison to show their buyers that some other home is a good value.
  • Buyers and their agents don't even visit the over-priced home, believing that a seller who asks an unrealistic price will likely be stuck on that price. They simply don't want to waste their time.
And then… the seller begins lowering the price. But that doesn't help, either, because buyers see that the home has been listed for a long time and automatically decide there must be something wrong with it.
The final result? Studies have shown that after an over-priced home becomes stale on the market it generally sells for less
If you have a home to sell in Vancouver, call me. I'll help you determine the true market value of your home – so that it will sell quickly, and for the maximum price.

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