If you price your home over what the buyers have recently been willing to pay, then your home will not sell. One of the biggest mistakes homeowners can make is thinking that they will start with a high price and then come down on the price later.
The reason this is a mistake, is that the first two weeks that a home is listed is the hottest time on the market. Buyers who have been looking for a home for a while are always excited to see a new home listed for sale. However, most buyers are smart enough to have shopped around and know what houses are selling for in your area. If your house enters the market priced higher than all the rest the buyers won’t even bother looking at it.
Later, when you decide to lower your price to what other homes are selling for in your area, it will be too late. You will have missed the initial wave of buyers that a new listing creates. If buyers do look at your home later, they may wonder if the lowered the price because something is wrong with the house. They may be more careful when inspecting the house, which may bring up more problems to fix.
Time on the market always works against you. When all is said and done, you may end up having to come down on the price even farther than your neighbours, just to get it sold.
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