Because overpriced homes usually take longer to sell and sell for less than market value. This concept is so important that I am going to repeat it – overpricing your home is the biggest mistake you could do when selling your home. And once you have done that it is very hard to recover if you change your mind.
So let’s discuss why this happens… The first thing to remember is that the typical home buyer is going to see anywhere between 10 to 20 homes before he decides to make an offer. Very few buyers will walk into a house, fall in love, and decide to buy it without seeing other houses in the neighborhood. And also remember that most home buyers will work with a real estate agent who will advise their clients whether a particular home is overpriced or not.
Where is your home located? Homes closer to major streets are easier to advertise and sell. More people will pass in front of the home and see the For Sale sign on the yard. More secluded homes don’t get the same level of exposure from the yard sign.
How much time do you have to dedicate to selling your home? If you work full-time and has very little time to dedicate to marketing your home, you may be better off hiring someone to do that on your behalf. In the other hand, if you do have the time and inclination, you can do a lot of the marketing yourself.
How much other similar houses sold for in your neighborhood. Make sure you focus on recent sales (within the past 3 to 6 months), not old sales. If most similar homes sold between $230k and $250k, you will probably have a hard time getting $270k for your home.
How comfortable are you with the paperwork required to close a real estate transaction in your state? Most states have standard forms and contracts that were created by the local Association of REALTORS. Those are the standard documents that are used in the vast majority of real estate transactions in your state. If you decide to sell your home yourself, you should get a copy of those documents and familiarize yourself with them. They are not rocket science, but you should have a good comprehension of their content. An option may be to spend an hour or so with a REALTOR or a Real Estate attorney to review those documents and ask questions.
Wouldn’t you love to be able to show all potential buyers that your house is priced 10% below the average price in your neighborhood? Buyers will feel confident they are getting a great deal if they decide to make an offer on your home. And as a side benefit, because they feel they are getting a great deal, they will be less likely to ask for seller concessions and discounts when submitting the offer.
And the best place to find this information (recent sales, pending transactions, and houses available for sale) is through a local, knowledgeable REALTOR with access to the multiple listing service (MLS) in your area. The fact that you decided to sell your home yourself does not mean that you should completely discard the services a local REALTOR can provide you. Why not get the best of both worlds?
Paul Amos is an Author His latest website is about Request a home loan, Mortgage Refinance, home equity loan Hidden Mortgage refinancing loophole exposed
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