When you decide to sell your property the single most important aspect of selling your property besides getting maximum exposure and traffic through your home is the correct asking price.
It is so common for people to place their home at a price position that the market can't bear.
Here are just some items that have no bearing on value.
1 - What an owner wants for a property! Take this example, I may want $5 for a $1 dollar bill but no matter how much I try or how much I market that one dollar bill.
What are the odds someone will give me five dollars for my one dollar bill? 2- What the owner paid for a house.
When someone sells a property it has absolutely no bearing on what they paid for the property.
Real estate values are based on many things but what someone paid is irrelevant and has no bearing on the buyer's perception of value.
You might have paid $500,000 for your home five years ago.
However if no buyer in the world is willing to pay $500,000 then is the property worth $500,000? The answer to this question is obviously no! 3- What the seller needs to sell the property for to break even.
This is becoming a growing concern for home owners.
Let's be realistic the buyers don't care what a seller owes; they only care what they are willing to pay for the property.
If you are a seller in this circumstance there are ways out, for example short selling the property.
Consult a real estate professional who specializes in short selling.
A simple fact is homes sell for the most amount of money in the first three weeks.
This is proven over and over again.
Think about this, how often do homes increase their listing price and then sell? Basically never! Don't homes usually drop in price until they sell? Of course! Homes that sell in the first couple weeks if priced right actually in many cases sell for more than asking price and typically more than market value especially if more than one party is interested in the property which causes a bidding war.
If you over price your home and the market feels it is over priced then it becomes stale and sits on the market month after month.
When you are lucky enough to get an interested party, they see your home has been on the market an extended time period.
The buyer now is in the drivers sit and has all the leverage because they know that your property is over priced.
Buyers today all have buyer's agents and know what similar properties have sold for in the area.
You can't fool home buyers; they are more educated than ever before.
For this reason they know what the property is worth, but they also know that they most likely have no competing offers.
Where do you think their offers will be? Less than what they perceive market value to be because of no competition.
History shows that homes that are priced to sell actually sell for much more than homes that are overpriced to begin with.
Never mind other factors such as additional expenses(mortgages, taxes, insurance, misc) and aggravation of waiting much longer to sell due to the decision to over price the property.
Now the question is how do I find out an accurate price for my home? That is easy, hire a full-time real estate professional with a proven track record for success.
It is so common for people to place their home at a price position that the market can't bear.
Here are just some items that have no bearing on value.
1 - What an owner wants for a property! Take this example, I may want $5 for a $1 dollar bill but no matter how much I try or how much I market that one dollar bill.
What are the odds someone will give me five dollars for my one dollar bill? 2- What the owner paid for a house.
When someone sells a property it has absolutely no bearing on what they paid for the property.
Real estate values are based on many things but what someone paid is irrelevant and has no bearing on the buyer's perception of value.
You might have paid $500,000 for your home five years ago.
However if no buyer in the world is willing to pay $500,000 then is the property worth $500,000? The answer to this question is obviously no! 3- What the seller needs to sell the property for to break even.
This is becoming a growing concern for home owners.
Let's be realistic the buyers don't care what a seller owes; they only care what they are willing to pay for the property.
If you are a seller in this circumstance there are ways out, for example short selling the property.
Consult a real estate professional who specializes in short selling.
A simple fact is homes sell for the most amount of money in the first three weeks.
This is proven over and over again.
Think about this, how often do homes increase their listing price and then sell? Basically never! Don't homes usually drop in price until they sell? Of course! Homes that sell in the first couple weeks if priced right actually in many cases sell for more than asking price and typically more than market value especially if more than one party is interested in the property which causes a bidding war.
If you over price your home and the market feels it is over priced then it becomes stale and sits on the market month after month.
When you are lucky enough to get an interested party, they see your home has been on the market an extended time period.
The buyer now is in the drivers sit and has all the leverage because they know that your property is over priced.
Buyers today all have buyer's agents and know what similar properties have sold for in the area.
You can't fool home buyers; they are more educated than ever before.
For this reason they know what the property is worth, but they also know that they most likely have no competing offers.
Where do you think their offers will be? Less than what they perceive market value to be because of no competition.
History shows that homes that are priced to sell actually sell for much more than homes that are overpriced to begin with.
Never mind other factors such as additional expenses(mortgages, taxes, insurance, misc) and aggravation of waiting much longer to sell due to the decision to over price the property.
Now the question is how do I find out an accurate price for my home? That is easy, hire a full-time real estate professional with a proven track record for success.
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