Sellers normally think about selling real estate for-sale-by-owner with the primary intention of saving money on commission. Experience has proven that it may actually result in less savings than hoped,… for sale by owner overpricing by MA sellers. Below are a few things for sellers to consider before making the decision to sell by owner.
Determining Listing Price
The real estate market is constantly fluctuating. Pricing may affect listing time, what price it finally sells for, and if it sells at all. Real estate professionals have the resources and expertise to assist sellers with listing value based on the specific home, location, and targeted timeline, and to adapt pricing as necessary based on fluctuating market conditions.
Selecting Comps
It all starts with picking comparable properties. Homeowners typically make several mistakes at this phase.
1. Looking back to the price of neighboring properties from years ago.
2. Using the value of their home from a old market analysis.
3. Utilizing varying styles or types of properties (i.e. comparing a split-entry to a full-sized colonial).
4. Comparing active listings that are incorrectly priced or not moving.
Using the wrong homes for pricing will result in inaccurate pricing and in most cases overpricing.
Adjustments to Value
Another facet of pricing is making adjustments for varying amenities. It is rare to find two identical homes, so adjustments are traditionally calculated for square footage, acreage, and amenities such as parking spaces, bedrooms, fireplaces, condition, and updates. Sellers naturally reference the amount paid for renovations. Unfortunately, the market value of different alterations do not often match the price paid for them. In fact, some repairs may not result in value to a home at all. Real estate professionals are familiar with what appraisers may use for differences in features and will apply those properly when compiling a value estimate on a home.
For Sale By Owner Overpricing By MA Sellers
Overpriced listings may cost homeowners valuable time and money. Homes may remain on the market with no interest or with activity from buyers that are only wondering why the price is so high. additionally, buyers have a negative perception of homes that have been marketed for a long time and commonly pay less even if the price is reduced later. In a down market, a home can naturally drop in value by the time it actually sells. All of this can cause a for sale by owner home to sell for much less than it could have with the proper help of a real estate professional. That difference can be higher than what a seller thought he or she was saving by doing it alone. This For Sale By Owner Overpricing By MA Sellers article was published by Christopher Graves at Sierra Pacific Mortgage Company.