Many homeowners think that their home is worth more than the list price recommended by their real estate agent.
Home buyers often understand current market value in the area where they are looking to buy better than sellers who own and live there. Buyers go through a number of new listings. They make offers, know what sells quickly and for how much, and what doesn’t and the reasons why. According to real estate agents in Dubai, home buyers still believe sellers are overpricing their homes.
The worth of your home depends on what a buyer will pay for it given current market conditions. This may be quite different from your expectations of what your home will sell for, or what you hope it is worth. You may end up quite disappointed if you rely on emotion rather than logic when selecting a list price.
The best opportunity for selling a home is when it is new on the market – this is when it is most marketable. Buyers wait for the new listings and usually these listings receive the most showings and make the busiest open houses during the first couple of weeks they are on the market.
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This is the chance to show your house off to advantage with a list price that would attract the attention of buyers. Listings that sell today are priced according to the market conditions.
Buyers nowadays have the need to be ensured that they are getting a good deal. They won’t pay more if they see that home prices are still falling, and in some areas of the city, they still are. In areas of strong sales, buyers may distance themselves from multiple-offer situations if they feel the recovery is slight and that prices may go down further before stabilizing. Even in areas where home sales have been good in the first half of 2012, local experts wonder how long the improvement will last.
Our advice for you is to take into account how real estate agents and appraisers establish an expected selling price or price range for your home when choosing a list price. They research the recent listing inventory for homes similar to yours that sold and the most recent sales give the best indication of the direction of the market.
When they analyze these comparable sales, they give more value to your home for features that it has that the comparables don’t, for example a remodeled kitchen. Value is subtracted from your home for attributes it lacks when compared to the sold comparables, for example an easily accessible, level backyard.
It’s difficult for sellers to step back and to have an impartial look at their home. But it is very important to do so if you want to sell successfully in this market. For instance, your home could actually sell for less, not more, than a comparable sale because you have a swimming pool in an area where most homebuyers would rather have a yard with a generous lawn.
If the comparable sale information suggests that the value of homes like yours is falling, select a list price that is lower than the competition’s to attract buyers to your home. You can be more aggressive as far as pricing is concerned if the comparables show that prices are increasing.
If there is high demand for homes like yours, you may receive more than one offer. Anyway, don’t list too high. It’s better to stay in the range shown by the comparables and expose the house to the market before accepting offers because the market will drive the price up if it’s warranted.
Never believe rumors circulating in the neighborhood about how high a home sold. Prices tend to get higher and higher when passed from one person to another. Choose your list price based on hard facts.
