Don't overestimate the value of overpricing

Even with the market tighter than it has been in recent years the temptation is always there for a vendor to price a property higher than its true value. Don't.

The justifications for overpricing can seem appealing.  A vendor might want to advertise their property at an inflated price in the hope they will achieve absolute top dollar by giving themselves room to negotiate on the price. More money is a great incentive, but the negative implications of asking too much for your property can be far more devastating. The possibility of underwhelming potential buyers is very high and very dangerous.  A higher price bracket means higher expectations.  The last thing a vendor wants is for viewers to leave a property with the impression it’s not worth the asking price.  A bad vibe is hard to overcome even if the price is reduced.

Potential buyers are usually very careful and only view properties that fall within their price bracket.  Nobody wants to fall in love with a house they can’t afford so in trying to get a higher price you may discourage viewers who could realistically be potential buyers. It is also crucial to remember that real estate agents have a licensing obligation to provide both vendors and potential buyers with a true evaluation of the estimated selling price of a property.

So when setting the price of your property take very seriously the valuation you have been given by your agent.  A realistic price is the best way to achieve a realistic outcome.