Frequently, when a home is priced too high, it experiences little activity. Gradually the price will come down to market value, but at that time that it’s been for sale too long and some buyers will be wary and reject the land.
The house sells for less than it’s worth.
Missing the Appropriate Buyer
You might think that interested buyers “can always make a deal”, but when the house is overpriced, potential buyers looking in a lower price range will never see it.
People who can afford a house at your asking price will soon realize that they can get a better value elsewhere.
When a house comes on the current market, there is a flurry of activity surrounding it. This is an important time when Real Estate Professionals and possible buyers sit up and take notice.
If the home is overpriced, it does not take very long for interested parties to shed interest. By the time the cost drops, a majority of buyers are missing.