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Real Estate Tip: The Risk Of Over-Pricing Your Home For Sale
Some homeowners want to list their home higher than the actual market value, just to see if someone "might go for it." Here's a few reasons why that's a bad -- an often really bad -- idea:
** You'll get fewer showings.
** It moves your home out of relevant searches
** Buyers are going to compare to other homes priced similarly -- and yours likely won't compare favorably.
** It's likely to spend longer on the market, making some buyers curious if something is wrong with the home.
** Homes that start off over-priced often sell for less than they would have if priced correctly from the beginning.
** Even if you are able to reel in an overzealous buyer, the home must still appraise. Over-pricing the listing increases the risk of a low appraisal, which can delay or derail the transaction.
Your realtor will provide you with the data and the comps to help determine the probable market value. And if you do want to over-price the listing, just understand the potential consequences.
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