Passionately Urban

Trulia offers this information regarding the 7 Deadly Sins of Overpricing

Most experts would advise that the best way to increase your odds of a successful sale is to price your home at fair market
value. But, as logical as this advice sounds, for many sellers it is still tempting to tack a few percentage points onto the price to
"leave room to negotiate". To avoid this temptation, let's take a look at the seven deadly sins of overpricing:

1. Appraisal Problems
Even if you do find a buyer willing to pay an inflated price, the fact is over 90% of buyers use some kind of financing to pay for their
home purchase. If your home won't appraise for the purchase price the sale will likely fail.

2. No Showings
Today's sophisticated home buyers are well educated about the real estate market. If your home is overpriced they won't bother looking at it, let alone make you an offer.

3. Branding Problems
When a new listing hits the market, every agent quickly checks the property out to see if it's a good fit for their clients. If your home is branded as "overpriced", reigniting interest may take drastic measures.

4. Selling the Competition
Overpricing helps your competition. How? You make their lower prices seem like bargains. Nothing is worse than watching your neighbors put up a sold sign.

5. Stagnation
The longer your home sits on the market, the more likely it is to become stigmatized or stale. Have you ever seen a property that seems to be perpetually for sale? Do you ever wonder - What's wrong with that house?

6. Tougher Negotiations
Buyers who do view your home may negotiate harder because the home has been on the market for a longer period of time and because it is overpriced compared to the competition.

7. Lost Opportunities
You will lose a percentage of buyers who are outside of your price point. These are buyers who are looking in the price range that the home will eventually sell for but don't see the home because the price is above their pre-set budget.

Most buyers look at 10-15 homes before making a buying decision. Because of this, setting a competitive price relative to the competition is an essential component to a successful marketing strategy.

Author: Ginger Wilcox, Head of Industry Training at Trulia

Beginning October 1 of this year, loan limits for many conforming and FHA loans are due to decrease, falling back to their 2009 levels. Here is a good explanation of why this is happening, and below you can see the new limits for some affected Colorado counties. There is still legislative talk of extending these limits for another year, but a final decision likely will not come until late September.