By Rick Hackney, Hackney Appraisal Service
Overpricing your home can be a problem. Let’s review some of the most common mistakes made in arriving at a list price, and my comments.
1. There is a listing down the street that you view as inferior to your home and therefore your property should be listed for a higher price.
Comment: Closed and pending sales are the best indicators of value, properties can be listed at any price.
2. The price per square foot of sales from your neighborhood, when applied to your square footage indicates the value.
Comment: Resort areas like Big Bear, are characterized by individually constructed homes over a long period of time. You will typically have large and small, old and new, custom and basic quality homes all in the same block. These wide variations make price per sq ft less reliable.
3. Property owners often remember the highest value a Realtor or Appraiser has ever quoted them. Sensational news stories about “increasing values” often influence sellers beyond reason.
Comment: List prices should be set after careful review of recent sales in the neighborhood with similar, age, living area, bedroom/bath count, etc.
4. Seller has X amount of dollars tied up in the property, or needs a certain amount to move.
Comment: The market doesn’t care about your personal finances, it only cares about paying a reasonable price for the property. List your property for real buyers rather than the mythical buyer with a “bag of cash”.
5. My house is worth X dollars because Zillow says so, even though they state that their Zestimate is only a starting place.
Comment: Zillow uses a computer program to estimate value based on public record information. In Big Bear, public records are often incorrect, and Zillow does not consider remodeling, updates, quality or appeal. Pricing a home properly is an art and science and is not accomplished with an online valuation tool.
If you want an accurate value of your home, always consult with a local real estate professional or competent appraiser.
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