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Overpricing Mistakes to Avoid

July 20, 2016

Homes in the Silicon Valley and Discovery Bay area continually sell for significant amounts; this region is one of the best in the nation, and the state, for real estate. If you are planning to sell your home, you want to determine a listing price that fits your property. But what happens if you think your home is worth more than comparable houses in your neighborhood? Should 072016_1you go with your own value estimation and list your property higher than recommended by a comparable report? While the decision is ultimately up to you, the seller, if you price your home too high, you risk taking longer to sell, and are more likely to end up lowering your list price in the end. Often sellers seek justifications to list their homes higher than the trend, and this decision can backfire. Listed below are some common mistakes to avoid when considering the market value of your house.

Return on Investment is another area where sellers can get stuck on when it comes to determining a list price. While you want a good ROI for your property, and in the Silicon Valley you are more likely to get one, be sure to not place too much desire for a making a specific amount back on your investment. While it would be great to gain $100,00, $500,00 or more when you sell, don’t let this desire become your basis for choosing your list price. Often what a seller thinks they should make on their ROI is an inflated figure that can lead to over pricing.

Planning on negotiating a selling price with all the offers you expect to get on your listing can lead to pricing your property too high. While there is often some negotiation involved with an offer, if you price your home higher than market trends call for, you risk not getting any offers at all, or ones that begin lower than you wanted to begin with. By setting your list price at a realistic amount, you have more room to negotiate with interested buyers.

Comparable Analysis Reports, or Comps are a great tool for helping to determine price ranges for homes similar to yours which are in your neighborhood. While there can be a lot072016_2 of details provided to compare your home with others, this is not an apple to apple comparison. There are bound to be a lot of differences in the details, which if you rely on too much, can lead you to thinking aspects of your home are worth more than they may be. If you have updated appliances in your kitchen for example, and some homes in your report also have newer appliances, and are listed at a higher value than your home, there is more at play in the over- all estimate than this one similarity. Comp reports are a great starting point to determine a good list price for your home, not for finding ways to increase the price.

If you love color and have a distinctive flair for design showcased throughout your home, don’t let your passion and style influence what you think your home is worth. Neutral paint colors and simplified décor and furnishings are strongly recommended for a tried and true reason. Buyers can be turned off from a listing if the colors are not to their taste. While you may have spent a small fortune having murals painted throughout, such a statement can actually lower the value on the market.

A well-priced home is one that can sell quickly. When you are ready to sell your home, me and my team are ready to help you through the entire process. Our goal is to make your experience both easy and pleasurable. Contact us today at (925) 634-7820, or by email at realestate@cecily.com.

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