Overpricing by Southern California Homeowners

Homeowners often contemplate marketing real estate on their own with the sole goal of making more money. Experience has proven that it can actually cost them more in the end,… for sale by owner causes of overpricing by Southern California homeowners. Below are a few considerations for sellers before making the decision to sell their own property.

Correct Pricing

The real estate market is continually changing. Pricing will affect listing time, what price it finally sells for, and whether it gets sold at all. Real estate brokers have the resources and experience to help homeowners with listing value based on their specific home, location, and desired time frame, and to adapt pricing as required for fluctuating market conditions.

Finding Comps

It all begins with picking comparable properties. Homeowners usually commit several mistakes at this step.
1. Considering the value of neighboring listings and what they sold for years ago.
2. Using the price of their own home from a past market analysis.
3. Utilizing varying styles or types of homes (i.e. comparing a ranch to a full-sized colonial).
4. Pulling up competing properties currently on the market that are incorrectly priced or not selling.

Using incorrect homes for pricing will result in incorrect pricing and usually overpricing.

Inaccurate Price Adjustments

Another facet of pricing is applying adjustments for differences between comparable properties. It is nearly impossible to find two identical properties, so changes are generally applied for living space, acreage, and features such as parking spaces, bathrooms, fireplaces, condition, and renovations. Sellers commonly refer to the price paid for renovations. Unfortunately, the market value of different alterations do not often match the price paid for them. In fact, certain expenses may not result in value to a home at all. Real estate brokers are educated on what appraisers will apply for differences in features and will calculate those accordingly for pricing.

Causes Of Overpricing By Southern California Homeowners

Incorrectly priced homes can cost homeowners valuable energy and money. Homes can remain on the market with little activity or with interest from buyers that are merely wondering why the price is so high. Furthermore, buyers have a negative view on listings that have been on the market for a long time and commonly offer less even if the price is later dropped. In a declining market, a home can naturally drop in value by the time it actually sells. All of this leads a for sale by owner listing to go for much less than it could have with the experienced advice of a real estate agent. That difference may be higher than what a homeowner hoped to save by trying it alone. This Overpricing by Southern California Homeowners article was published by Matthew Rapoport at Homes Inc..