Sellers often wonder why Buyers don't make offers. Some sellers find it hard to believe that their listing price is too high for current market conditions. Buyers can still make a lower offer, can't they? Yes, they can, but in most cases serious Buyers do not make offers on homes that are priced too high for the following reasons.
When the market is glutted with inventory and there are many homes to choose from, why would a Buyer waste time making an offer on a property that is listed above the competition?
In low inventory markets, Buyers often shy away from making a low offer on a listing because they don't want to offend the Seller. This is particularly true if the Buyers have a serious interest in the property. They often prefer to wait for a price reduction before making an offer.
Sellers often think that if a Buyer really likes their home, they will pay more for it. This is true to a point however; few buyers are willing to pay more than fair market price. A home is rarely worth more than what the market will bear and is not necessarily worth what the Seller wants.
Buyers usually know market value better than Sellers do. Sellers may look at a few houses before listing theirs for sale. Buyers frequently look at as many as fifty or more homes before they decide to make an offer on one. So, it is difficult, if not impossible, to convince today's cost-conscious, savvy Buyers to pay more than market value for a home.
Sellers who put an unrealistic price on their home send a message to Real Estate Agents and prospective Buyers: here is a Seller who may be difficult to work with.
Sellers who discover they are priced too high should reduce their price as soon as possible. A home is most marketable when it is new on the market. If it doesn't sell within the first month or so because the price is too high, Real Estate Agents and their Buyers lose interest.
Sellers may be reluctant to drop their asking price when the property is new to the market. Keeping a home on the market at an improbable price would result in a lower selling price when it ultimately does sell. If the price is reduced when the listing is relatively new, there is a better chance of maintaining the marketing momentum.