Home Selling Advice - Lowering the Listing Price
Dangers of Starting with a High Listing Price
If you have to lower your list price after it has been initially listed then you risk losing the initial burst of activity that is usually associated with a new home coming on the market. This could result in your home taking longer to sell. This does not mean that you should not do this, some people especially in a good sellers market will deliberately price their home high just to see if someone will make an offer.
One thing to note is that even if you do sell your home at a higher than market price, the buyer will probably still need a mortgage. When the lender performs the appraisal there is a chance that it will come back lower than the sales price. When this occurs the buyer will probably come back to the table and ask for the purchase price to be lowered or they may just withdraw from contract leaving you to put the home back on the market.
So be careful when setting your listing price, it could backfire.Return to Home Selling Advice