Sellers lose the positive impact of the newness of their home on the market, and can lose prime selling time.- Buyers concentrate on objections and minimize good features of the home.
- Sales associates lose enthusiasm about showing properties that Buyers reject due to price. They prefer showing homes where their chances of selling are better.
- Sellers place themselves in a poor position to obtain maximum dollars, since property can become “shop worn.”
- Sellers lose valuable time. Time is wasted in preparing for showings; families are separated needlessly when an out of town transfer is involved, and school openings are missed.
- Sellers lose money in more house payments, utility bills, taxes and insurance.
- Buyers become suspicious, thinking that there is something wrong with either the home or the neighborhood, when a home has been on the market too long. Buyers always ask how long the house has been on the market.
- Negotiations between Buyers and Sellers usually break down when a home is overpriced because a Seller does not recognize a good offer when he/she sees one.
- Seller loses opportunities to buy another home, or incur additional costs when carrying two mortgages.
- Statistically homes that are on the market longer sell for less than fair market value.
Overpriced Listing Statistics:
| % of Buyers Who Will Look | |
| Percentage listed over fair market value: 10%: $110,000 | 2% |
| 5% over Fair Market Value: $105,000 | 30% |
| Fair Market Value (F.M.V. ideal pricing!): $100,000 | 60% |
| 5% under F.M.V.: $95,000 | 86% |
| 10% under F.M.V.: $90,000 | 92% |