RE/MAX Rocky Mountain Real Estate Brian Nicodemus Oct 2019

Price It Right the First Time

The Internet has empowered all buyers with information and home buyers are no exception. The amount of information available to the public includes details on size, condition, sales history, current inventory, recent sales, photographs, videos, school info, drive-times, entertainment, and much more. Also included in this is information is home warranties from such websites as https://homewarranty.firstam.com/articles/what-is-a-home-warranty to help people understand what they can do in and outside their home.

When a seller realizes that buyers are educated with facts, it becomes unlikely that they will pay more than a home is worth. If you are considering buying home there are many questions that arise during the home buying process. If you find yourself with questions be sure to ask. Buying a home is one of the biggest decisions you will make in life, so make sure your questions do not go unanswered. A great resource to utilize is your real estate agent and or your mortgage broker. If you are looking for a mortgage broker, the kansas city mortgage lender provide FHA home loan service to home buyers.

If a home is priced too high in the beginning, it may stay on the market longer than normal, which could adversely affect the ultimate sales price. It is a natural reaction for people, personally or professionally, to assume that something must be wrong with a home that doesn’t sell in a reasonable time for that market.

The seller is entitled to maximize the equity in their home and pricing it properly in the beginning is the best way to achieve that. Overpricing can reduce buyers activity because they assume that the best homes are purchased soon after they are offered for sale, and if one has been on the market longer than normal, there must be a problem with it. Similarly, sales associates may come to the same conclusion.

After buyers have seen a few homes in a certain price range, they begin to expect similar amenities in each home they look at. If a home is overpriced, it will not compare favorably with the other homes that are being viewed. Sometimes, the buyer may even think that another home could be a bargain because it offers much more for the same price as the overpriced listing.

Shopping the market means looking at the homes that meet a buyer’s wants and needs and selecting the one that gives them the most, whether it is in price or amenities. The overpriced listing doesn’t compete well, and it extends the market time. There is a documented study that shows that the longer a home stays on the market, the lower the price will be.

It is essential that a seller receive factual information to price their home to compete favorably in the current market. Some of the obstacles can include:

~Failure to objectively compare the current and sold homes with their own

~Neighbors who mislead the seller as to how much they got for their home

~Fear of making a mistake and thinking they can start high and always lower the price

~Loss of perspective because the seller is emotionally involved

~Expecting the home to sell for more than fair market value because they need the money

~Agents who will accept a listing at any price in order to tie up the property until the seller realizes the price is too high

What a seller paid for the home or the cost to rebuild it today do not affect market value. Neither does the amount spent by sellers on certain improvements that were made for their own pleasure and enjoyment. Whilst electronic upgrades and installations (such as those offered by Asbury Electric) can increase the value of a property, it is unrealistic to expect a buyer to pay more than market value for a home. The seller sets the price of a home but the buyer determines the value. If the home is priced properly in the beginning, it is more likely to sell for a higher price, in a shorter period and with fewer problems.

If you need help buying or selling real estate, please call me today at 406.250.7311.