WHAT IS OVERPRICED?
An overpriced listing is one, which the asking price is clearly above what comparable sales information, and current and projected market conditions justify the home's fair market swing in value (value range) to be. As a result, listing agents and their sellers have no documentation available to justify the home's asking price to knowledgeable buyers and selling agents who are familiar with current comparable sales information and current and projected market conditions.
THE DANGERS
There are numerous potential dangers, problems and liabilities that taking and attempting to market overpriced listings can lead to, such as:
1. It can result in a home not selling at all.
2. It can result in very few or even no showings.
3. It can result in a home selling for less money than what it should.
4. It can result in a home sitting on the market for long periods of time, resulting in a frustrated Seller.
5. It can result in numerous price reductions, which will eventually make the buyers wonder what is wrong with it.
6. It can lead to a difficult, emotional and unsuccessful offer negotiation process.
7. It can hurt sellers, because real estate agents are not motivated to show their homes.
8. It can hurt the overall image of a real estate firm and listing agent, because of having a reputation for overpricing.
9. It can cause a home to become stale in the marketplace.
10. It helps realistically priced homes to sell faster by acting as a negative comparison.
11. It can lead to the seller wanting to take their house off the market.
12. It can result in the seller wanting to cancel their listing agreement, because the first thing that the sellers blame when their home does not sell is the Realtor-not the price!
13. This will then cause a loss of referral business.
14. If one is fortunate enough to get an unsuspecting buyer to put in an offer, it could lead to numerous appraisal problems.
15. It can lead to extreme emotionalism and anxiety - selling your home ranks in one of the top ten most stressful things people do - and a home not selling makes it even worse!
