Buyers typically begin their home search online. So, why don’t buyers make offers on overpriced homes?
When searching online they often use their budget as search parameters. Many times, pricing a home above their budget will cause them to miss overpriced listings. For example, sellers want to sell for no less than $1,000,000. They list their home for $1,100,000 believing that buyers will make an offer if interested. Often a buyer with a one-million-dollar budget will not see this listing, because their search will be limited to homes priced up to their one-million-dollar budget.
When an overpriced listing does appear in a buyer’s group of homes for sale, it is because the buyer is looking for a home in that price range. As the home is overpriced, it may not compare favorably to the other homes in that price range. Buyers will first want to view the most desirable homes that meet their needs. Often, an overpriced home, will not fall into those specific requirements because it will be missing the upgrades, space, or location of the homes for sale that are priced accordingly.
Another obstacle in overpricing is the buyer’s Realtor. They may believe an overpriced listing is priced high because the seller is unrealistic. Buyer’s agents prefer to show homes where they believe sellers are reasonable and eager to sell.
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