Sellers often think about marketing a home on their own with the primary goal of saving money on real estate commission. History has shown that it can actually cost more than it saves,… for sale by owner causes of over pricing by Belmont MA homeowners. Below are a few considerations for sellers before deciding sell on their own.
Deciding on Price
The real estate market is constantly moving. Pricing can determine days on market, what amount it sells for in the end, and whether it sells at all. Real estate agents have the knowledge and expertise to help homeowners with listing value based on the specific property, location, and targeted timeline, and to adapt pricing as necessary for fluctuating market conditions.
Identifying similar properties is the first step to pricing. Homeowners usually commit several mistakes at this phase.
1. Considering the value of listings in the neighborhood and what they went for years ago.
2. Using the value of their home from a old market analysis.
3. Using varying styles or types of homes (i.e. comparing a split-entry to a colonial).
4. Comparing active listings that are overpriced or not selling.
Using the wrong homes for comparison will result in incorrect pricing and in most cases overpricing.
Adjustments to Value
Another facet of pricing is applying adjustments for varying features. It is rare to find two identical homes, so adjustments are usually calculated for square footage, amount of land, and amenities such as parking spaces, bathrooms, fireplaces, condition, and updates. Homeowners tend to refer to the price paid for renovations. However, the market value for most alterations rarely match the cost for them. In fact, some expenses may not result in any value. Real estate brokers are familiar with what appraisers may use for adjustments and will apply those accordingly when putting together a value estimate on a property.
For Sale By Owner Causes Of Over Pricing By Belmont MA Homeowners
Incorrectly priced properties may cost homeowners valuable time and money. Listings can remain on the market with little activity or with activity from buyers that are only curious as to why the price is so high. additionally, buyers have a negative perception of properties that have been on the market for a long time and are likely to pay less even if the price is later dropped. In a declining market, a property can even be worth less by the time it actually sells. All of this can cause a for sale by owner property to go for significantly less than it could have with the experienced help of a real estate broker. That difference can be higher than what a seller thought he or she was saving by doing it alone. This For Sale By Owner Causes Of Over Pricing By Belmont MA Homeowners information is shared by John Montanaro at Renaissance Realty.