The perils of overpricing
Dec
14
Written by:
12/14/2011 4:32 PM
Here's a lesson for anyone tempted to get greedy with the listing price of their home.
Building in a big premium, far from guaranteeing a nice gain at the end of the day, instead may be a ticket to multiple price reductions. And when you do sell, you could wind up parting with your house at a sizable discount.
Certainly that's what many frustrated sellers and their agents are discovering as homes come on the market at lofty prices, only to die a death of a thousand price cuts.
And as it turns out, there is academic research out there to back up this up as well.
Consider a little known - in consumer circles anyway - study from 2002.
Kudos to Professor Ken H. Johnson of Florida International University for digging up this dusty jewel.