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What is a common effect of overpricing a property on the market?

Increased buyer interest and competitive offers

Extended time on the market with fewer offers

Overpricing a property typically results in extended time on the market with fewer offers. When a property is set at a price that exceeds its fair market value, it often discourages potential buyers who may perceive it as out of their budget or not worth the asking price. Consequently, as the property lingers on the market, buyers may begin to question why it hasn’t sold yet, creating a negative perception.

This prolonged time can lead to reduced interest from potential buyers, as they might either wait for a price reduction or choose to focus on other, more fairly priced properties. Eventually, as the property remains unsold for a longer period, sellers may need to lower their asking price to re-attract interest, indicating that overpricing has caused initial demand to falter. In this way, the common effect of overpricing is indeed an extended time on the market with notably fewer offers.

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A quick sale at above market value

Higher likelihood of multiple offers

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