Advice for Home Sellers: Avoid Overpricing

By Adam Miller, Epoch Times
June 11, 2009 Updated: June 11, 2009

All home sellers will face an important decision in deciding what price they will ask in return for their home. It is natural for sellers to assign great value to their home. But it is detrimental to overprice in today’s market. Sellers must be educated and realistic.

Based on the home’s various qualities, and the sales approach used, the home will either sell or it won’t—it is a "do your best and hope for the best" scenario.
Even if a home sells, perhaps the sellers feel that they made too many concessions. This goes to show that with a completed sale, there still no real guarantee of protection against specified loss.

To begin, sellers must remember two key points. Firstly, a home will surely sell if it is priced correctly. Secondly, a home has the best odds of selling the first 30 to 60 days it is on the market.

So pricing a home correctly—from the very beginning—and letting go of the mentality of overpricing is essential for a happy ending to the story.

Not overpricing your home is insurance. The premium—the difference between overpricing and pricing correctly—is a sacrifice that sellers must make. Because sellers who price correctly can rest assured that they have made the best possible decision in marketing their home, and have increased their odds of selling quickly. Therefore, pricing correctly is the best protection against specified loss.

Specified loss, in this case, is the risk of not selling due to the detriment of overpricing.
To seek further protection against losses, sellers should consult a qualified real estate professional who can assist in the important decision of pricing correctly, as well as bring experience and guidance to the table.