Know How To Price Your Home

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Know How To Price Your Home

Date Added: March 19, 2008 01:16:29 AM
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Category: Finance & Mortgage

 

There are so many reasons why a home won't sell in a real estate market that is slowing down. One of the main reasons a home will not sell is the price. It is a common mistake among homeowners to overprice there home hoping this will allow them to afford any offers that might be below the asking price. This is a misconception that can lead to your house being on the market for a long period of time.

Overpricing

Buyers are the ones who set the real estate market in motion. If a house is priced too high for the market the home will not see as much traffic unless the homeowner is willing to come down on the price. Buyers want to find an attractive home, but they also want to feel like they are getting a great value. Overpricing your home so you can come down makes potential buyers feel like it would be too much of a hassle.

Overpricing a home can cause you to price out potential buyer who might have gotten financing at a more reasonable asking price. Even if you do find a buyer who is willing to pay the overpriced amount, your home may not appraise for the asking price. This can make the financing fall through.

Though you may be using a real estate agent who agreed to the asking price, they may be using that to their own benefit of selling other listing they have available to buyers. They would be willing to show your home to potential buyers knowing that they have listing at a more appropriate price and your home would most likely help sell them.

When a homeowner chooses to overprice their home it inadvertently pushes your home out of the competing market. If your home is only worth $150,000 and you have it listed for around $195,000 this means you are competing with home that are close to being worth $200,000. This is a reason to really consider the asking price of your home because you can not compete with home that is in a higher price range the same way you can with those in your own price range. This will cause your house to stay on the market too long.

A home on the market for a long period of time will begin to make potential buyers wonder if there is a more serious reason why. This is something most buyers are not going to want to see if they feel there are hidden problems with your home. Soon potential buyers and real estate agents will not be looking at your home.

The best way to ensure that your house is going to sell quickly is by making sure that the asking price you have set is a fair market value. Some realtor even suggest to under-price by one or two percent to ensure the sale of your home. If potential buyers feel like they are getting a great deal your home will less likely to stay on the market a long time.

 

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