Awhile back we wrote this post outlining 4 reasons not to overprice your home, and it's such an important topic we think it's worth revisiting. We get it, the market is crazy competitive right now and it seems like testing it with a high asking price might be a great way to maximize your profit, but in reality it has damaging affects that could have the opposite result. Here are a few more reasons that drive our point home:
If you overprice your home, not only will you miss out on views, showings and offers, but you'll lose credibility with buyers. Expect that buyers who live in your area have done their research, so they know what similar homes are worth, and they likely won't want to get involved in negotiations with sellers that seem to have unrealistic expectations.
When you're working with an agent who advises you to overprice your home, or doesn't advise against it, they're either uncomfortable being honest with you (not a good quality in an agent), they just want to get their sign up in your lawn for exposure, or they want their name to be associated with higher priced homes. None of these motivations are good ones, so if they don't advise you to price your home appropriately for the market, start shopping for another agent immediately.
According to research, you'll get the best price for your home if you sell within the first two weeks of hitting the market. If you price competitively, you're likely to get attention from multiple buyers who recognize the value of your home at the listed price. In a competitive offer scenario, you could end up getting more from your home than you would if you overpriced.