Owners believe they should list their home at a higher price than they can expect to sell it for. Their reasoning is, this gives them room for negotiation. “You can always go down but you can never go up”, I’ve heard this so many times! Quite frankly, it’s frustrating! I believe this kind of thinking was born in the era preceding agency disclosures, when only sellers were represented by the agents. In today’s real estate market, buyers are represented by their own agents. As far as neighborhood values go, buyers are privy to the same information the seller has. They can see if you have overpriced your home and for some they will choose not to look at it. Fewer lookers will translate into fewer opportunities to sell.
Studies performed by the National Association of Realtors have shown that an overpriced home will stay on the market longer and usually will sell for less than if it had been properly priced to begin with.
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