DOWN SIDE OF OVER-PRICING YOUR HOME to “test” the market.

A property that’s not priced properly can languish on the market and get shopworn, says Dan Elsea, president of brokerage services at Real Estate One in the Detroit area. A four-bedroom house in Troy, Mich., has been sitting on the market for 10 months, even though the price has been cut to $349,900 from $394,900, Elsea says. By contrast, a similar home in the same market sold this month for $360,000, just 23 days after it came to market priced more appropriately at $369,000, he says.

During the boom in prices in 2004 and 2005, however, sellers who over-priced their homes often made a lot more money. Sure it took longer to sell their home but with prices increasing so rapidly, they would eventually sell near their “over-price.”

But that’s ancient history. Arizona may not see another market like that for 10 or 20 years.

In today’s market and for the forseeable future, severe over-pricing can in fact cost you a lot of money.