Del Mar - Encinitas - La Jolla - coastal San Diego real estate

MINIMIZES OFFERS

An overpriced house discourages prospective buyers from making offers since the difference between the asking price and market price becomes substantial.

AGENT ENTHUSIASM & RESPONSE

Agents lose interest in property that is overpriced. They are discouraged by

the futility of trying to sell a home which is obviously priced over its fair market value.

QUALIFIED BUYER EXPOSURE

Overpriced houses fail to attract qualified buyers, or attract "wrong" buyers - those

who can afford and will buy "more" house.

DECLINE IN SHOWINGS

Agents avoid showing overpriced houses in order not to lose credibility with their buyers.

LESS FOR SELLER

Market interest in an overpriced property soon declines. The house is felt to be

"shopworn" or damaged goods. When this happens, the seller may become desperate and end up selling at a much lower price. In the meantime, he or she must bear maintenance and holding costs. The result is that a seller typically gets much less than they could have if the house had been correctly priced in the first place.

LOSES PROSPECTS FROM SIGNS

 Prospects who learn about the house from "the sign get turned off if it is overpriced.

LIMITS FINANCING

Financial institutions and mortgage companies must agree on the price.

They will loan only a percentage of the appraised value of the house. If the house is overpriced, the buyer will not get the loan they need to make the purchase, unless they can provide the difference in cash.

WASTE OF ADVERTISING DOLLARS

A house that is unrealistically priced fails to get normal advertising response.This reduces the effectiveness of advertising and results in the loss of advertising dollars.