Pitfalls? “But I just want to move up/ pare down and I KNOW my home is worth XXXX amount after all the upgrades we have put into it over the years!” Sound familiar?
Every real estate agent has heard this a time or two. Yes, we get it. You have a beautiful home, made fabulous memories and saw a home similar that went for tons of money. But, as real estate agents we are here to guide you to what the current market can bear. And, unfortunately that may be nowhere near what you have in your mind.
But you must also ask yourself, how fast do you want it sold? We ran into a graphic from realtor.com that pretty well explains the need for pricing your home correctly and RISMedia wrote a short post on it as well located at http://rismedia.com/2016/08/09/perils-of-overpricing/). You see, in the first few weeks your home is on the market, you may receive your asking price – even better. But as time goes on, the likely hood of you receiving your asking price dwindles. Take a look at real numbers:
Also remember how you felt when you bought your home many years ago. You loved it, right? But still you wanted to pay a fair price. Did you go see homes that were overpriced? I’ll bet not – and neither will buyers for your home come to see your home if it is not priced right.
But then again, you are a smart seller – otherwise you would not have a realtor to guide you in the current market, the proper price and even a price reduction if we ever need to. We are here to get the best price on your home the market will allow and help you in all the process along the way until your home is sold!
Waiting to sell a property might seem like a good idea, especially in real estate markets that are still growing. But in cities where real estate markets have seen lots of competition, waiting to sell a property in order to see a large return may backfire if other nearby areas also see a rise in property values. If you’re procrastinating selling a property because of a hope that the property’s value will increase, it’s best to talk to a real estate agent about the local market to see if now is the time to sell or not.
seen a very large return on investment. The median home value in the U.S. in 1980 was $47,200. As of 2014 numbers, that value rose to $188,900 (and for those markets that have seen huge gains, the median value may be hundreds of thousands greater). For those just entering the real estate market, buying a home is incredibly expensive and requires a lot more money than it did when our parents bought their first home. Real estate, especially for younger people, should almost act as a financial strategy, where one plays the local real estate market by buying low and selling high in a relatively short amount of time to fully maximize an investment. Staying in a home for only three to five years could be a much more financially sound strategy than hoping a single home’s value increases x amount over the next 40 years. The economy is completely different than it was when Baby Boomers first entered the job market. Don’t procrastinate on selling with the hope that you’ll see a greater return on your property when you retire like many of our parents are seeing.
home sale because of an emotional attachment, it’s best to remember that those memories will always be with you, no matter where you live. It’s very unlikely for an emotional bond to lessen, especially in a home full of love – resist the temptation to procrastinate and preserve your memories through photos and videos, which can go with you no matter the next destination.