The perils of overpricing

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.

Read : ” The perils of overpricing” by The Boston Globe

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