|Common Reasons Sellers Want To Overprice Property
OVER-IMPROVEMENT -- Seller has over-improved the property in relation to what the market feels are adequate improvements.
NEED -- Owner's need for money (amount owed on the property, for example).
BUYING IN HIGHER-PRICED AREA -- Cost of new home where seller is moving is higher.
ORIGINAL PURCHASE PRICE WAS TOO HIGH -- Seller paid too much.
MOVE ISN'T NECESSARY -- Seller doesn't have to move, so decides to play the market.
CORPORATE BUYOUT -- Seller has a guaranteed buyout.
LACKING FACTUAL DATA -- Seller has a need but has no access to current data on recent documented sales.
NEIGHBORS -- Often neighbors who have sold their homes will lead the seller to believe that they got more for their properties than they actually did, which causes the seller to choose an artificially inflated price.
INFLATIONARY TIMES -- The seller believes that prices should go up in kind with or ahead of the inflation rates because of economic factors.
RECESSIONARY TIMES -- The seller does not acknowledge that prices tend to go down because of adverse economic conditions.
FEAR -- Many sellers fear making a mistake in pricing that would lead to losing a significant portion of their equity.
LOSS OF PERSPECTIVE -- The seller is not objective because they are too emotionally involved in the sale of the property.