Selling a Home: Avoid Overpricing the List Price

So you want to sell your home? As the real estate market continues its recovery, many prospective home sellers are tempted to jump into the market to attempt to make some money. After all, the market has pent up demand on which the economy has had a stranglehold the last several years.

Although it is a natural desire to make a nice profit on real estate, there are some cautionary things to consider as well. One of the most important things to keep in mind is to not overprice your home at the time of listing it.

The practice of overpricing, a listing happens more frequently than it should, and it ends up costing the home’s seller money in the long run. How does it end up costing the seller money?

Overpricing a home will discourage showings by perspective buyers, it can turn off people from even inquiring into a listing, and it can even help sell other homes in the same area because potential buyers see those homes as a better value than the overpriced home. How does one go about making sure a home is not overpriced then?

Research

The most important activity a seller should perform is market research. There are numerous websites on the Internet that are literally gold mines of information. Also, look around and pay attention to the area wherein the house will be selling. Stop by homes that have “For Sale” signs in front of them.

Make calls to the real estate agent on the signs. Construct your own file of comparable properties. Also, consider a visit to the County’s tax record department. This can be accomplished either physically, or nowadays, online. This endeavor will help to determine actual home sales and prices in the immediate area.

It also generally provides a history of the home, relative to past transactions, taxes, and sometimes even appraisals. After having procured this type of information, the seller has basically captured a snapshot of the homes in the area, and can make a more informed decision where to start thinking about the initial listing price.

Reality

There is a good chance the seller thinks his or her property is more valuable than the buyer believes it to be. This is why there will almost always be negotiation involved in the buying and selling of real estate. That leaky water heater the seller replaced for $600 just prior to listing the home will likely not generate a $600 return on that “investment.”

The same for that specialty bronze golden green onyx slate tile the seller paid $30,000 for the garage floor. Be realistic. Did you add square footage? That will likely increase the value. Did you add a third stall to the garage? That should increase the value.

Realtor

There is no better resource for listing and selling a home than a real estate agent. This is their life. This is their love. This is what they know and do. Call yours today.

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