Home owners often evaluate selling a property on their own with the primary objective of making more money. Experience has proven that it can actually cost more than it saves,… for sale by owner may result in overpricing by MA sellers. Below are a few considerations for sellers before deciding sell by owner.
The real estate market is constantly moving. Pricing will determine how long it remains on the market, what amount it eventually sells for, and if it sells at all. Real estate agents have the knowledge and experience to assist sellers with marketing price based on their specific property, location, and desired time frame, and to adjust it as required for fluctuating market conditions.
It all begins with finding comparable listings. Homeowners usually make a few errors at this step.
1. Looking back to the value of properties in the area and what they sold for years ago.
2. Referring to the price of their home from a past mortgage refinance.
3. Selecting varying 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.
Using incorrect homes for pricing will result in incorrect values and typically overpricing.
Making Price Adjustments
Another aspect of pricing is making adjustments for differing amenities. It is rare to find two identical listings, so adjustments are generally made for interior space, acreage, and amenities such as parking spaces, bathrooms, fireplaces, condition, and updates. Homeowners naturally use the amount paid for upgrades. However, the market value of most items do not often match the cost for them. In fact, certain expenses may not add any value. Real estate professionals are familiar with what appraisers will calculate for adjustments and will apply those properly for pricing.
For Sale By Owner May Result In Overpricing By MA Sellers
Overpriced homes can cost homeowners valuable energy and money. Listings can sit on the market with little activity or with interest from buyers that are strictly wondering why the price is so high. additionally, buyers have a negative view on homes that have been on the market for a long time and are likely to offer less even if the price is reduced later. In a declining market, a listing can even be worth less by the time it sells. All of this leads a for sale by owner home to sell for significantly less than it may have with the proper guidance of a real estate professional. That difference could be more than what a seller thought he or she was saving by trying it alone. This For Sale By Owner May Result In Overpricing By MA Sellers topic was published by Peter DaMore at Law Offices of Peter T. DaMore Jr..