Sellers sometimes get tempted to test a higher price at first to see if they’ll be lucky enough to find a buyer willing to pay. Unfortunately, experience shows this pricing strategy rarely pays off. Instead, asking the right price from the start avoids the many dangers of overpricing.

The right sales price is based on factors like the size of the house, its amenities and features, demand for homes in your area, recent home sales, and prices of similar homes currently on the market.

You may have decorated lovingly or renovated extensively but those improvements may have a small effect on the market value of your home. Actually, personalized decorating can slow a sale unless the style has wide appeal.

Overpricing Dangers
Here are 8 reasons why overpricing your home is dangerous:

You will miss out on pent-up demand.
The most activity on a listing will come within the first 30 days. An initial high price can discourage buyers, not tempting them to wait for the price to come down.

You will raise doubts about hidden problems.
If your overpriced house stays on the market for a long time, it may eventually be seen as “stale inventory” which can suggest structural or mechanical imperfections, even after you lower your price.

You will reduce buyer pool.
Extremely high pricing will eliminate a whole class of qualified buyers. Many buyers know just how high they can go and don’t even look at homes priced above their limit.

You will risk lender rejection.
If you do get a sales contract, the contract may fall through because of its low appraisal. The buyer may not be able to borrow enough to proceed with closing.

You could sell the competition.
Overpricing helps sell other, more competitively priced homes first. Your home may be compared to underscore what a good deal another home is.

You might turn off buyers.
You may experience few or no showings because some prospective buyers who can afford the price won’t waste time with an overpriced listing. They know they can find a better buy elsewhere.

You could frustrate prospects.
Prospective buyers who may extend their best offer can become frustrated when they can’t buy the home they want at a fair market price only because an unreasonable seller insists on accepting only a premium price.

You will frustrate your own timetable.
You could also become frustrated when your house fails to sell in a timely manner. Only a price reduction is likely to help sell your house faster and meet your estimated time of moving out.