Merced Home Sellers: 5 Terrible Reasons to Overprice Your House
Chances are that you have heard stories of Merced home sellers who have sold their homes well over asking price. But this does not happen because the seller started out asking more than the house was worth on the market.
There are many reasons why Merced home sellers overprice their homes and these are five of the worst:
Maximizing Your ROI
It is good to make necessary upgrades to your Merced house before listing it; however if you are trying to increase your asking price in order to boost your return on investment you are making a mistake.
Merced buyers are not taking your investment into consideration when deciding what your house is worth to them. It is also important to keep in mind that what you owe on your house will not dictate what your house sells for; the market will.
A Merced Home of Your Design
Merced homeowners who have put their own blood, sweat and tears into designing (and even building) a house tend to be more emotionally attached to the house. Because of this these Merced home sellers believe the value of the home it greater than it is. Again, the market determines the price.
Overvaluing Your Design Skills
It has been proven time and again that buyers like to see homes that have neutral tones and where they can easily move their own personal items into. However, there are Merced home sellers who think their sense of décor adds value to the home. Do not make this mistake.
The results of a Merced home that has been designed to incorporate “unique” color fixtures and finishes in order to add value is a buyer who will see a lot of updates that need to be made.
Boosting your asking price based off your decorating style is a surefire way to price yourself out of the Merced market. The chances of finding a buyer that has your exact sense of style are close to zero.
Ignoring the Comps
It is true that no two Merced houses are the same so when selecting comps you need to make sure that the ones you are using are close.
At the same time, being overly picky with your Merced comps will not help you in finding an accurate listing price.
Factors that can make a difference between your Merced house and a comp are the number of bedrooms, number of bathrooms, square footage, floor plans, size of lot and amenities. Factors that will not make a difference between your Merced house and the comps are things like slightly larger patio, larger hot water tank, or a bigger refrigerator.
If you are breaking down small things like this to justify increasing your asking price, you will end up with a house that sits on the market.
Factoring in Negotiation
In many markets it is common for vendors to start with a high price because they expect sellers to haggle the price down. However, Merced real estate is different.
If you choose a higher listing price for your Merced home, you may actually price your house out of the search queries that potential buyers are doing. Buyers may not even see your house to try to offer a lower price.
There are many reasons why Merced home sellers overprice their homes when it comes time to selling. The main culprit in this is emotions. When potential Merced homebuyers are looking at the physical attributes of your house they are basing what they will pay for it off of what the market is dictating at the time – not your feelings.