Sellers often contemplate listing a property on their own with the primary goal of saving money on real estate commission. History has shown that it may actually result in less savings than anticipated,… for sale by owner may not lead to savings for MA sellers. Below are a few considerations for sellers before making the decision to do it alone.
Getting the Price Right
The real estate market continually changes. Pricing can impact listing time, what price it sells for in the end, and whether it sells at all. Real estate professionals have the resources and experience to assist homeowners with marketing value based on their specific home, location, and desired timeline, and to adapt it as required based on changing market conditions.
Finding the Right Comps
It all starts with finding comparable properties. Sellers generally make a few mistakes at this step.
1. Considering the price of properties in the area and what they sold for years ago.
2. Using the value of their home from a past market analysis.
3. Utilizing different styles or types of homes (i.e. comparing a split-entry to a colonial).
4. Comparing competing properties currently on the market that are overpriced or not selling.
Using the wrong homes for comparison will result in incorrect values and usually overpricing.
Making Price Adjustments
Another facet of pricing is making adjustments for differences between comparable properties. It is nearly impossible to come acorss two identical properties, so adjustments are traditionally applied for square footage, acreage, and features such as garages, bathrooms, fireplaces, condition, and renovations. Homeowners tend to refer to the price spent on upgrades. However, the market value of different amenities rarely match the price paid for them. In fact, some features will not result in value to a property at all. Real estate brokers are familiar with what appraisers may calculate for differences in features and will apply those accordingly for pricing.
For Sale By Owner May Not Lead To Savings For MA Sellers
Overpriced homes may cost sellers considerable time and money. Listings may remain on the market with little activity or with interest from home buyers that are strictly wondering why the price is so high. additionally, home buyers have a negative view on listings that have been on the market for extended time frames and commonly offer less even if the price is later reduced. In a declining market, a home can even be worth less by the time it sells. All of this can cause a for sale by owner listing to sell for much less than it may have with the experienced guidance of a real estate broker. That expense could be higher than what a seller estimated to save by doing it alone. This For Sale By Owner May Not Lead To Savings For MA Sellers information was prepared by Bradford Pratt at REMAX on the Charles.