Many sellers don't understand that overpricing can actually result in your getting LESS for your house than if you had priced it correctly in the first place.
Knowledgeable agents and buyers often won't bid on an overpriced home. By the time you "wise up" and reduce the price to where it should have been priced in the first place, many of your best prospects will have bought other houses. This decreases demand for your now properly priced home! The problem is exacerbated if you placed your home on the market in the spring, it sat on the market "overpriced" throughout the summer, and now that you've reduced your price, the market has slowed.
Also, consider that agents tend to steer buyers away from homes that have been in the Multiple Listing Service for long periods of time. Agents and buyers become suspicious that something is wrong with your property if it didn't sell relatively soon after it went on the market.
It's important to price it right the day you put it on the market!
Also, consider what you could have done with the profits from the sale of your home if you had priced it right. Suppose you priced it right and sold relatively quickly, and invested that money in a rising stock or bond market.
PLEASE ALSO READ HIGH IMPACT MARKETING
On the other hand, suppose you overpriced your home, and after several months, had to reduce it to where it should have been priced in the beginning. Even worse, the house still isn't sold! But that's not enough, the seller usually reduces the price once more and eventually sells it at a hefty discount. Way lower than true market value.
You get the picture - Please scroll down to view the graph.
Most Realtors are specialized in either working with Buyers or working with Sellers. Consequently, a Realtor whose reviews are predominently from Buyers is in all probability a Buyers agent. Therefore, he would probably not have a big marketing plan and would not be able to get as much out of your sale as a good Sellers agent would.
And please remember: take a good look at the Realtor you want to list your property with. It can make a difference of tens of thousands of dollars depending on your sales price. Most of the time, friends or friends of friends are not the ideal listing agents. Why? 80% of all Realtors just get by while the top 20% are very successful, So, your chances that you pick a blunder are 8 out of 10. Or would you want a friend of a friend, who happens to be a lawyer, handle your file in a one million dollar lawsuit without references, screening and interviewing the lawyer?
Please remember, we will never rush you with your real estate decision.