Sellers often think about selling real estate for-sale-by-owner with the sole goal of making more money. History has proven that it can actually cost them more in the end,… for sale by owner dangers of over pricing by Plum Island sellers. Below are a few considerations for sellers before deciding sell on their own.
The real estate market continually fluctuates. Pricing can determine how long it remains on the market, what amount it eventually sells for, and if it gets sold at all. Real estate brokers have the resources and experience to assist homeowners with listing price based on the home features, location, and desired time frame, and to adjust pricing as required for changing market conditions.
Selecting similar listings is the most important step to pricing. Sellers typically make a few errors when it comes to this.
1. Considering the value of properties in the neighborhood from years ago.
2. Using the price of their own home from a old mortgage refinance.
3. Selecting different styles or types of homes (i.e. comparing a split-entry to a colonial).
4. Pulling up active listings that are incorrectly priced or not selling.
Referencing the wrong listings for pricing will lead to inaccurate values and usually overpricing.
Inaccurate Price Adjustments
Another facet of pricing is making adjustments for varying amenities. It is rare to come acorss two identical properties, so changes are typically applied for living space, amount of land, and amenities such as parking spaces, bedrooms, fireplaces, condition, and upgrades. Sellers naturally use the price spent on upgrades. However, the market value of most items rarely match the price paid for them. In fact, certain expenses may not result in any value. Real estate brokers are familiar with what appraisers will use for adjustments and will apply those properly for pricing.
For Sale By Owner Dangers Of Over Pricing By Plum Island Sellers
Incorrectly priced homes may cost sellers valuable time and money. Listings may sit on the market with little interest or with interest from home buyers that are merely curious as to why the price is so high. Furthermore, home buyers have a negative perception of homes that have been marketed for a long time and are likely to pay less even if the price is later dropped. In a declining market, a listing can naturally drop in value by the time it sells. All of this leads a for sale by owner home to go for much less than it may have with the experienced guidance of a real estate agent. That loss may be more than what a homeowner thought he or she was saving by going it alone. This For Sale By Owner Dangers Of Over Pricing By Plum Island Sellers information is shared by John Wells at Wellsco Realty.