Sellers Beware....Pitfalls of Over Pricing Your Home
It's hard for homeowners to be realistic when they are emotional about the home they have lived in and raised their family in. But this is exactly what sellers need to do so that they can make rational decisions about a list price that will actually result in a sale.
Your decision should be based on homes that have sold in your area that could be considered somewhat comparable to your home; Realtors and Appraisers called them ‘comps’. Stop in at a few open houses in your neighborhood and see how they compare with yours.
Try to put yourself in the buyers' shoes. This is easier for sellers who are also buying in this market. They know what it's like to want to make sure they're getting a good deal. Your house needs to be listed at a price that is enticing to buyers because it represents a good value. In most areas, buyers are buying in a market knowing that prices might drop again until the market fully recovers.
It's hard to resist the temptation of trying for a higher price than the comparable sales indicate. However, you won't be happy if your home is on the market for months with no activity, and each time you drop the price it feels like too little too late. You can end up selling for less later if home prices in your area are still declining. By overpricing your home, you can end up netting less if the home stays on the market a long time.
You refinanced your property in the past year so you were given a great price by the appraiser but beware! Refinance appraisals are notoriously inaccurate in terms of market value; usually too high. An appraiser is attempting to gauge what price a buyer would pay but has no contract to compare. A high refinance appraisal can leave the seller with a false expectation.
Listing your home based on what you want or need to net from the sale won't motivate buyers to pay more. Buyers pay market value. They're won't overpay in today's market.
Find out what buyers are looking for in your area and see how your home matches up to their expectations. Generally, today's buyers are looking for a home that is well-located, in good condition and is priced right for the market.
If your home needs a lot of work compared with the competition, you'll either need to have work done before selling, or discount your price accordingly.
Location…Location...Location is so important so make sure your home is in the same area or that will probably reflect the price difference and the appraiser will know this when he comes to appraise your home.
In Summary: For best results, be realistic about the current market value of your home and what preparation it needs in order to sell successfully in today's market. Trust your Realtor as she/he has run the comps and will show you what has sold and what is currently on the market and realistically what you will net.
Be wary of real estate agents who tell you that your home will sell for a higher-than-supportable price just to get the listing. Then they work on you over time until you reduce the price to market value. Agents refer to this as buying a listing. Respect and trust the Realtor who gives you the facts and is confident they can sell your home for that price.
If you price your home too high, you are just wasting your time. Price it fairly and start packing.
Kristin Hamilton DRE #014092138 Keller Williams Realty -I sell real estate in Riverside and San Bernardino Counties commonly called the Inland Empire. I am a trained and experienced Short Sale agent. If you are looking for a professional and experienced agent, I am just a click away. Google me at Kristin Hamilton-Real Estate Agent. Homeowners and Buyers both will find my services top notch and successful. Call me to sell your home; both traditional and short sales.
California is a dream come true state no matter what your needs or wants are. We have year round warm weather, beautiful beaches, rustic mountains and desert communities. If you are looking for a home in southern California, please contact me. I am a local California Realtor, live in the Inland Empire community and aware of the local market. I am here to help you find a home or to sell the home you currently own. California has great opportunities to view Nature and Bird Watching. Whatever your needs are, you will find it here in California! From the Inland Empire you are 45 minutes to the beaches, mountains or desert. Housing is affordable in the Inland Empire area!
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