Raising the sales price of a home doesn’t help a buyer for several key reasons, most notably, Appraisal issues:

• Higher Costs: A higher sales price means the buyer will have to pay more upfront or borrow a larger amount through a mortgage. This leads to larger monthly payments, which may not be affordable for many buyers. Higher costs can strain the buyer’s finances or even make the home unaffordable.
• Increased Interest Payments: When a buyer borrows more money, they end up paying more interest over the life of the loan. Even a slight increase in the home price can add thousands of dollars in additional interest costs over the mortgage term.
• Larger Down Payment: Buyers often need to make a down payment based on a percentage of the home’s price. If the price increases, the required down payment also goes up, which can be a significant financial burden for the buyer.
• Appraisal Issues: If the price is raised too high, it may exceed the appraised value of the home. Lenders typically won’t finance a mortgage for more than the appraised value, which could prevent the buyer from securing a loan unless they make up the difference with more cash.
• Reduced Negotiation Power: When the sales price is higher, the buyer has less room for negotiating additional costs, such as closing costs or repairs. A higher price limits flexibility in the deal.

Ultimately, raising the price primarily benefits the seller, not the buyer, as it increases the financial burden on the buyer without adding any real value.