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Avoid common mistakes when Pricing your home

By
Real Estate Agent with HomeSmart

 

It can be difficult to determine what your property is worth in this current real estate market that we are in.

The market is trending up so quickly that it is making it difficult here in Arizona to price your home appropriately.  One common mistake that sellers make is over pricing their home because they are emotionally attached to their property.

When pricing your home, be objective and reasonable to come up with a selling price that will draw the attention of buyers.

Here are a few examples of common mistakes that are made when people are pricing their homes.

Reading too much into online information

Avoid relying on information on pricing that you have found online of sold properties.  Sometimes this information is not accurate. This is a great place to start getting some general information, but a Realtor is the person that would be able to help you with true facts.

Over estimating the market values 

So many people feel that they can get out of their home what they bought it for.  Depending on when you bought your home and the price you paid, determines everything!  Did you buy in the bubble and paid top price for it, or did you buy prior to the real estate bubble and have patiently waited and now you have some good equity!  The real state market here in Arizona has changed drastically over the past few years.

Overpricing can lead to appraisal issues

Don't overprice your Arizona home in order to be able to negotiate the price you want. If you overprice your home you create a few different problems. First of all, first time home buyers that are on a tight budget may rule out seeing your property because it doesn't fit in their price criteria, so you have eliminated a group of good, qualified buyers. Secondly, we are seeing appraisal issues here in the West Valley of Arizona because of overpriced homes and the lack of inventory. Buyers are going over asking price to try to win a bid, then the appraisal doesn't come in and we have another issue!

Factoring in the price of a future home 

When listing your home, the price should not factor in the cost of your next home.  The listed price when selling should reflect what the market will currently bear and be priced appropriately.

Here is the take away from this article:

When determining the listing price of your home in the West Valley of Arizona, list at the current market value. You will get a fair amount for the home when sold, the buyer will be happy and will feel that they bought the home at a fair price as well and everyone is happy!

To find out more about selling your home or buying a home her in Arizona, call me at 602 647-6782, or email me                            at @spinneo@prorealty3.com

 

 

 

Ki Gray
SkiHomes.com LLC - Aspen, CO
SkiHomes.com - the ultimate snowsport home search!

Very common mistakes but in general the most important one is usually overpricing which can unfortunately sometimes be the result of many different factors.  Have a great day, Sherri!

May 17, 2013 04:20 AM
John Pusa
Glendale, CA

Sherri - Thank you for the very good list of information about avoid common mistakes when pricing your home.

May 17, 2013 07:13 AM