Most Home owners who are thinking of selling have lived in their current home for 5 years or more. Over that time they have developed an emotional attachment to their home. Who wouldn`t? It`s a safe haven. Its a soft spot to land at the end of a crazy work day in a crazy fast-paced world. Its a place where you raise your kids and spend time with your loved ones. So naturally when it comes time to move, sellers view their homes from an emotional standpoint. This can and often does affect their perceived VALUE of their home, and often not in a good way - at least in the eyes of a potential buyer.
Consider SUBJECTIVE vrs OBJECTIVE value. What you perceive as valuable- subjective (the stone fireplace that you spend all of your family christmases around) might be perceived as `something that needs updating` by the buyer- objective. Consider this - Your home is only worth what the CURRENT market will bear. This means the BUYER will only pay the current fair market value for your home. Not what you the home owner think it might be worth because you have put your own special touches into the property.
Disadvantages of over pricing? -Limits the number of potential buyers looking in a certain price range, scares buyers away as they are well educated in the current market and market prices, reduces traffic (fewer people viewing your home) so your home stays on the market longer and runs the risk of becoming `stale`. Usually when this happens you are forced to reduce your asking price which often scares buyers even more and makes them suspicious asking `whats wrong with the property?` You also run the risk of not selling your home at all which leaves you feeling let down and frustrated and wondering why?
So if you remain OBJECTIVE and look at your home from a buyers viewpoint, You probably won`t run the risk of over pricing it . Get a proper CMA (comparative market analysis) done by a certified specialist (Realtor) and leave the emotional aspect out of it. Doing so will place your home in a much better marketing position for more qualified buyers and chances are will sell much faster and possibly for more money (multiple bidders if the current market dictates it).