Last summer I showed one of my clients a condo that was priced too high. The buyer passed on it. Often homeowners mistakenly believe that if they overprice their home buyers will simply offer less than the asking price.
It doesn’t work that way. Generally, buyers will not make offers on overpriced real estate.
The house sat on the market for months and it was taken off the market last winter. It was put back on the market this summer and still overpriced but listed for less than it was last year. It sold after a few months on the market for less than the asking price.
The better strategy in today’s market is to price it right or price it slightly below what it should sell for. The end result will be several offers and as buyers compete with each other the offers get higher.
Buyers who are looking for a bargain should make a less than asking price offer on the overpriced homes. There are few bargains in the current local housing market but occasionally buyers end up paying less when they make offers on the houses everyone else is ignoring.
In any market pricing matters.
