Incorrectly priced properties will cost homeowners considerable time and money

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Home owners often think about marketing a property on their own with the sole intention of saving money. History has proven that it can actually lead to less savings than anticipated,... for sale by owner overpricing by Fairfax County homeowners. Below are a few things for sellers to consider before making the decision to do it alone.

Getting the Price Right

The real estate market is continually fluctuating. Pricing may impact market time, what price it ultimately sells for, and if it sells at all. Real estate agents have the resources and experience to assist sellers with marketing price based on their specific property, location, and desired time frame, and to adapt it as needed based on fluctuating market conditions.

Finding Comps

It all starts with identifying comparable listings. Sellers usually commit a few mistakes when it comes to this.
1. Looking back to the value of neighboring listings and what they went for years ago.
2. Using the price of their own home from a previous home loan refinance.
3. Utilizing different styles or types of homes (i.e. comparing a ranch to a colonial).
4. Comparing competing properties currently on the market that are incorrectly priced or not moving.

Referencing incorrect homes for comparison will lead to incorrect pricing and typically overpricing.

Inaccurate Price Adjustments

Another aspect of pricing is making adjustments for varying features. It is difficult to find two identical homes, so changes are commonly calculated for square footage, acreage, and features such as garages, bedrooms, fireplaces, condition, and upgrades. Sellers naturally reference the amount paid for upgrades. Unfortunately, the resale value of most items rarely match the price paid for them. In fact, certain features may not result in value to a property at all. Real estate professionals are familiar with what appraisers will calculate for differences in features and will calculate those properly when putting together a market analysis on a property.

For Sale By Owner Overpricing By Fairfax County Homeowners

Incorrectly priced properties will cost homeowners considerable time and money. Listings may sit on the market with no interest or with activity from home buyers that are merely curious as to why the price is so high. additionally, home buyers have a negative perception of homes that are on the market for a long time and are likely to pay less even if the price is reduced to the correct range later. In a declining market, a listing can naturally drop in value by the time it actually sells. All of this leads a for sale by owner home to sell for much less than it may have with the proper help of a real estate professional. That difference could be higher than what a homeowner thought he or she was saving by doing it alone. This For Sale By Owner Overpricing By Fairfax County Homeowners information is shared by Amir Sadeghi at Keller Williams Realty.


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Comments (1)

Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

Absolutely Amir,

The homeowner most always loses out pricing their home too high.

Nov 24, 2014 01:14 PM