Sellers normally think about marketing a home for-sale-by-owner with the primary goal of saving money. Experience has shown that it can actually cost them more in the end,… for sale by owner pricing mishaps for NH homeowners. Below are a few considerations for sellers before deciding sell by owner.
The Pricing Issue
The real estate market continually changes. Pricing will impact how long it remains on the market, what amount it eventually sells for, and if it gets sold at all. Real estate agents have the resources and experience to assist sellers with marketing value based on their home features, location, and targeted timeline, and to adjust pricing as required for changing market conditions.
Identifying similar properties is the first step to pricing. Homeowners typically commit several mistakes at this step.
1. Considering the price of neighboring homes from years past.
2. Referring to the price of their own home from a past mortgage refinance.
3. Using varying styles or types of properties (i.e. comparing a ranch to a full-sized colonial).
4. Pulling up competing homes currently on the market that are overpriced or not selling.
Referencing incorrect listings for comparison will lead to inaccurate values and in many cases overpricing.
Adjustments to Value
Another facet of pricing is making adjustments for varying features. It is difficult to come acorss two identical properties, so adjustments are typically applied for interior space, amount of land, and amenities such as parking spaces, bedrooms, fireplaces, condition, and renovations. Sellers naturally refer to the price spent on renovations. Unfortunately, the market value of different items do not often match the price paid for them. In fact, some repairs may not add value to a property at all. Real estate brokers are educated on what appraisers may calculate for adjustments and will calculate those accordingly for pricing.
For Sale By Owner Pricing Mishaps For NH Homeowners
Overpriced properties may cost sellers considerable time and money. Homes can sit on the market with little interest or with interest from buyers that are strictly wondering why the price is so high. Furthermore, home buyers have a negative perception of homes that are marketed for a long time and are likely to pay less even if the price is reduced to the correct range later. In a declining market, a listing can naturally drop in value by the time it actually sells. All of this leads a for sale by owner property to go for much less than it could have with the proper advice of a real estate agent. That expense may be more than what a homeowner thought he or she was saving by trying it alone. This For Sale By Owner Pricing Mishaps For NH Homeowners topic was published by Customer Service at Accurate Title.