There was a time, and it’s not entirely gone, when people thought that pricing their homes high to “test the waters” was a smart strategy when they wanted to sell.
What could be the harm in overpricing, then gradually coming down if no one makes an offer?
A lot, actually.
First, you lose time. People looking for a house just like yours will pass yours by if it’s over their price range. They won’t even see it, given the search parameters pretty much every website offers these days.
Second, you lose momentum. An overpriced house that gradually drops into the range of fair market value doesn’t cause excitement. A well priced house in great condition in the current market causes a feeding frenzy. It brings full price offers, multiple offers, sometimes sells for over asking.
Third, you create questions. Those price adjustments are public, and they make a buyer wonder what’s wrong with your house. Even when they come to look at it, they’re looking for trouble. They look for justifications for their caution.
Finally, overpricing your house may cause you to lose out on whatever house you hope to move to. The closing process, even for the fastest deal, is very slow right now. So if you’re hoping to buy another house, you may as well not even begin looking until your home is under contract.
There is no such thing as an underpriced home, particularly in a strong sellers’ market. Price your home at or slightly below its market value after you’ve done everything you can to make it marketable. You’ll end up with offers that bring it right to where it should be. That’s how the market works. And you won’t have to wait until next spring.