What will happen if you overprice your home?

You will not sell immediately and you will lose the excitement that a new listing generates: most activity on a listing comes within the first 30 days on the market. An initial high price can discourage buyers, causing you to miss out on pent up demand.

You will lose the most qualified prospects. Buyers are not likely just “make an offer” on your home, because it is probable they will never even see your property: they will tour properties listed within their price range instead.

You will help the competition instead of yourself by demonstrating to potential buyers the good value of other properties.

Your home may become “stale”: the longer a home is on the market, the more people wonder why. There is a tendency to presume that there is something “wrong” with the home even after you lower the price.

If you do get an offer at the higher price, the deal may fall through at appraisal. A lender will not give your buyer their mortgage if they feel the home is overpriced and they cannot justify the loan to value ratio.

All these factors combine to increase your frustration and to ultimately undermine your negotiating position!