Many times, sellers are tempted to price their homes a little high in hopes of getting more money from the sale. But often the opposite happens, and they sell â€“ after a long time on the market â€“ at a price below what the home would have sold for if it had been priced correctly at first. This is because most buyers look only at homes they can afford.
- If a home is overpriced, many potential buyers don't bother to consider it because the asking price is above what they can afford to pay.
- Buyers who do tour the overpriced home see that it doesn't measure up to others in the same price range.
- By pricing the home close to market value, on the other hand, the sellers make the most of their best opportunity to sell to the home's true market during the highest traffic period â€“ the first weeks after the new listing comes out. That's when real estate agents call in the buyers they have been working with to see what's new on the market.