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Q: Can't I list high and come down later?
A: Yes you can- but there are many drawbacks to doing so. You see- pricing your home for anything higher than market value will actually cost you money, time and headaches. One reason for this is that an overpriced listing will actually help to sell more reasonably priced properties. Buyers will shop around and if there are similarly priced properties in the same area, they will see them all. If your home is overpriced, the buyer will be disappointed in what they see, but in turn will be impressed with the apparent great value of a properly priced property when compared to yours.
Another drawback to pricing your property at higher than market value is that the first few weeks that your home is on the market is the most critical time. You are the new kid on the block- and buyers that have been waiting for new listings to become available will come to see your home. These are the most qualified buyers because they are just waiting to find the right property, they are already working with an agent, and more than likely are completely approved for their loan. If your home is overpriced, the buyers looking in that price range will be disappointed in your home and will buy something else. But the real loss is that the buyers in the price range that your home should really be in may not even look at your home because it is something they don't qualify for. Consequently, your home languishes on the market until you bring the price down to a more realistic figure. If these buyers haven't purchased something else yet, they will wonder why your home hasn't sold in all this time. Your home is now what is known as shopworn or stigmatized property. Buyers will be asking themselves why your home hasn't sold and what is wrong with it? So you will find yourself lowering the price again from the true market value of your home in order for the home to sell.
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