Sellers normally evaluate marketing a property for-sale-by-owner with the sole objective of making more money. History has shown that it may actually result in less savings than hoped,… for sale by owner can lead to overpricing by Florida homeowners. Below are a few considerations for sellers before making the decision to do it alone.
Correct Pricing
The real estate market is continually changing. Pricing will impact listing time, what price it sells for in the end, and whether it gets sold at all. Real estate brokers have the resources and experience to help sellers with marketing value based on their particular home, location, and targeted time frame, and to adjust pricing as needed based on changing market conditions.
Comparable Properties
It all begins with finding comparable listings. Homeowners generally commit several errors at this phase.
1. Looking back to the value of neighboring listings and what they sold for years ago.
2. Referring to the value of their home from a past market analysis.
3. Using different styles or types of properties (i.e. comparing a split-entry to a full-sized colonial).
4. Pulling up active listings that are incorrectly priced or not moving.
Using incorrect homes for comparison will lead to inaccurate values and typically overpricing.
Adjustments to Value
Another facet of pricing is making adjustments for differences between comparable properties. It is rare to come acorss two identical homes, so adjustments are traditionally applied for square footage, amount of land, and amenities such as garages, bedrooms, fireplaces, condition, and updates. Homeowners commonly refer to the amount paid for upgrades. However, the resale value for different items rarely match the cost for them. In fact, some repairs may not result in value to a property at all. Real estate brokers are educated on what appraisers will apply for adjustments and will apply those properly when preparing a market analysis on a property.
For Sale By Owner Can Lead To Overpricing By Florida Homeowners
Overpriced properties may cost homeowners valuable energy and money. Listings can remain on the market with no activity or with activity from buyers that are only wondering why the price is so high. Furthermore, buyers have a negative perception of listings that are marketed for extended time frames and commonly offer less even if the price is reduced later. In a declining market, a property can naturally drop in value by the time it sells. All of this leads a for sale by owner listing to sell for significantly less than it may have with the proper help of a real estate agent. That expense can be more than what a seller estimated to save by doing it alone. This For Sale By Owner Can Lead To Overpricing By Florida Homeowners article was published by Sonny Solomon at The Keyes Company.
