^{COMMON PRICING ERRORS}

Overpricing real estate is one of the most common mistakes made by sellers. Most of the time, this strategic miscalculation is a result of one of these common errors in thinking.

Price Based on Amount Invested
Sellers often take a certain price position based on the amount of money that they have invested in their home. They might take the purchase price, add to that the dollars that they have since spent on improvements, and finally, add a handsome return on their investment. This strategy is flawed in that the amount of money you have invested in your home has no relation to its current market value.

Price Based on What You Need
Some seller's determine an asking price based on what they want, or perhaps need from the sale to achieve their future objectives. Perhaps they are moving to a market where homes are more expensive. Maybe they have a certain "maximum mortgage objective" for their next home. Sellers should be aware that the price of real estate in their destination market does not affect the value of their home in their current market area.

I've Got Lots of Time to Sell
Often times, sellers misunderstand the fact that more time on the market tends to work against them, instead of for them. The fact is, that typically things get worse over time instead of better. Consider this. Your property has been on the market for three months, priced above market value. It's already been shown to almost every buyer that could possibly have an interest in buying it. They've all said, "thanks, but no thanks." What are the chances that someone is going to come along and agree to pay too much for a home that nobody else seems to want? Yes, it happens, but people win the lottery too.

Hiring the Highest Bidder
A prudent home seller will talk to more than one REALTORŪ when they are considering a sale of real estate. In fact, we recommend that you speak with at least three real estate professionals before you put your home on the market. Some sellers are tempted to list the home with the agent that comes back with the highest suggested list price. BEWARE! Real estate agents are not in the business of buying homes. They sell them. Just because one agent states that your home should bring a certain figure, doesn't mean it will. Some real estate agents might even purposefully over estimate your home's value to secure a listing contract. After that, they begin to work you for a price reduction. In the end, they've sacrificed your most valuable marketing time and almost certainly cost you money. Choose your agent based on the services that they are prepared to provide you. It's these things that will be helpful in getting a top dollar sale.

They Can Always Make An Offer
Some sellers feel that buyers can simply make them an offer if they feel the price is too high. In fact, buyers seldom express interest in writing offers on overpriced homes. It ties up their deposit funds and is usually just a hassle attempting to negotiate on overpriced homes.