When a home is priced above market value potential agents and their buyers view it as “overpriced” which means fewer showings. When it does get shown, the feedback is more often than not negative, due to mispricing. Once the word gets out that the property is priced above market, it will scare away potential buyers. A home that is deemed overpriced will therefore sit on the market and become “stale”. Over time the owner may come to understand the error and agree to lower the asking price to elicit renewed interest in the stale property, but unfortunately it may be too late to repair the situation. An overpriced home gives buyers and their agents the feeling that the owner is not motivated to sell and not flexible, two very real requirements in the negotiating process.
Homes that are priced within the “Limbo” area, are homes that are slightly overpriced, which may be okay if the property is in tip top shape, prepared to “wow” potential buyers; otherwise you risk sitting with this home for an extended period. So remember if you are serious about selling your property but are a bit in “limbo” about the pricing, you must be prepared to always put his best foot forward and show off the potential of the property to the fullest. Pay special attention to detail, and be prepared to make repairs or slight updates to showcase your home.
The best possible scenario if you are looking to quickly sell property and the highest return, would be a that fall in what we call the “sweet spot”. These are the homes that are priced at market, and look great. Buyers feel comfortable that the home has been cared for and offers come in because the buyers view the seller as being “fair”. People appreciate doing business with others that they feel are fair and not trying to take advantage of them. It is proven that a house listed at market value will bring in the most offers and will often create a situation that presents the owner with multiple offers to consider allowing the seller to choose and offer that best meets his needs in term of price and terms.