Sellers often think about marketing real estate for-sale-by-owner with the primary objective of saving money. Experience has shown that it can actually cost them more in the end,... for sale by owner can lead to overpricing by Las Vegas homeowners. Below are a few things for sellers to consider before deciding sell their own home.
Getting the Price Right
The real estate market is constantly moving. Pricing will affect market time, what amount it finally sells for, and whether it gets sold at all. Real estate agents have the resources and experience to assist sellers with marketing price based on the specific property, location, and desired timeline, and to adapt pricing as required based on fluctuating market conditions.
It all starts with picking comparable listings. Sellers usually commit a few errors when it comes to this.
1. Considering the price of neighboring homes and what they went for years ago.
2. Referring to the price of their own home from a past loan refinance.
3. Utilizing varying styles or types of homes (i.e. comparing a ranch to a colonial).
4. Comparing active listings that are incorrectly priced or not selling.
Referencing incorrect properties for pricing will result in inaccurate pricing and typically overpricing.
Adjustments to Value
Another facet of pricing is applying adjustments for differing amenities. It is difficult to come acorss two identical homes, so adjustments are usually applied for square footage, amount of land, and features such as parking spaces, bedrooms, fireplaces, condition, and renovations. Homeowners commonly reference the price spent on renovations. However, the resale value of most amenities rarely match the price paid for them. In fact, certain repairs may not add value to a property at all. Real estate agents are educated on what appraisers may calculate for differences in features and will calculate those properly when compiling a market analysis on a property.
For Sale By Owner Can Lead To Overpricing By Las Vegas Homeowners
Incorrectly priced homes may cost sellers valuable energy and money. Homes can sit on the market with no activity or with interest from home buyers that are strictly wondering why the price is so high. Furthermore, buyers have a negative view on properties that are on the market for extended time frames and are likely to offer less even if the price is later reduced. In a down market, a listing can naturally drop in value by the time it actually sells. All of this can cause a for sale by owner property to sell for much less than it could have with the experienced help of a real estate agent. That difference could be more than what a seller estimated to save by going it alone. This For Sale By Owner Can Lead To Overpricing By Las Vegas Homeowners article was published by Arina Hanciulesco at Keller Williams Realty.