100 Real Estate Tips in 100 Days (Day 90)
Real estate licensees continue, as they have always done, to agree to market a home for a price in excess of what the comparable market indicates is a reasonable sales price. Of course, many homeowners do the same thing when they attempt to sell their homes without professional assistance. Why does this happen, considering the time, expense, and emotional hassle that must be devoted to selling a house?
Some real estate licensees will list a home at what the seller wants to sell it for, regardless of the apparent market value. The fact is that home market listings, even over priced ones, can create traffic that may generate a sale, just not a sale of the overpriced listing. Pressure from management or family to do something, anything, can lead to sticking a for sale sign in front of hopeless opportunity.
For Sale by Owners (FSBO's) tend to price their home based on what they want, without knowing or caring about the market environment. In many of those situations, the disappointment is double, the take less than what they expected, and they usually list their home with a licensee and pay a sales commission.
Today's well informed buyer can determine a reasonable price for a home quickly, even in unfamiliar markets, based on the volume of information available to anyone just by asking. Sellers are well served by studying the market, or having a professional study the market, and price their home at a competitive price. That approach saves a lot of time and emotional damage, and gets the homeowner down the road quickly.