We recently read an article about why sellers overprice their homes. You may not be thinking of selling your home any time soon, but we thought this was a good reminder that when it comes time for you to do so, the local real estate market dictates the price based on similar types of homes in your area. However, it is common for sellers to think that their situation and home is “special” and justify to themselves why they think their home is worth more.
Here are some of the reasons sellers provide as to why this happens:
- They deserve to make a profit.
- They don’t want to bring money to closing.
- They feel their home is better than similar homes.
- They want to recover the actual cost of home improvements.
- They need the extra money for a larger down payment.
- They think buyers will negotiate.
- They think that a real estate agent should be able to sell it if only they found the right buyer.
It’s understandable that a seller considers the price they paid for the home. Add to that the real estate commission and closing costs and the desire to make a profit…However, the market doesn’t always co-operate and an overpriced home will be on the market for a longer time period. While you might have some buyers look at your home, you may not receive any offers.
If you are thinking of selling your home, we suggest that you interview at least two or three real estate agents and review their market analyses. If you’re looking for some direction, please contact one of our Loan Officers because we know some of the best, hard-working agents in the area.