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Overpricing a home is the worst mistake a seller can make

Overpricing a home is the worst

mistake a seller can make.

What you think your house is worth, current selling prices, and what a buyer will be willing to pay, can be three different figures.

True value is determined by location, the general economic climate, the current real estate situation, the age and condition of the property, the general appearance of the neighbourhood in which the home is located, and the surrounding amenities and facilities.

Over-pricing is the major reason why some properties either don't sell or take a long time to sell. Also, when these homes finally do attract a buyer, the price offered is usually well below the original listing price.

Unless a homeowner receives factual information on the current market, the selling prices of similar housing in their own neighbourhood, and a realistic estimate of the value of the home they wish to sell, they can get carried away by a sense of overvalue. They may be tempted to place an unrealistically high price tag on their property. Often, despite the counselling of their realtor, a seller will insist on "trying" the market at the highest possible price. Nothing turns buyers off more quickly.

Here's why: Almost all potential buyers look at several homes before making a choice. Their knowledge of the market place grows as their viewing increases. When they see an obviously overpriced property, they simply move on to more realistically priced homes. As the overpriced house continues to sit on the market over a period of time, buyers shy away from it more quickly. They begin to assume it has some defect that other home seekers have avoided.

Every seller should aim for a quick sale at fair price. To get that, they need the professional advice of an experienced realtor. Evaluation and knowledge of the market place is a part of the professional's job. They are in constant touch with actual selling prices in the local neighbourhood, and what buyers are demanding. They are familiar with comparable listings in the area and their estimated values.

The realtor will take into consideration any improvements you've made to the property and will indicate the added resale value. They'll check the services. They'll know which features to promote in advertising. And they'll advise you if any zoning changes contemplated in your area could add or detract from current values

The professional realtor will bring you neighbourhood sales information and other factual material to help you arrive at the proper value. If you take their advice, your home should sell within a reasonable length of time at fair market value. In almost every case, you will get more for your home this way than by following that first urge to overprice it.

For a factual estimate on the fair market value of your property, call on The Smart Choice Team We sell a lot of houses in every area of the city and we know the mood of the buying market.

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