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Can You Find Homes For Sale In Your
Price Range... Or, Is What You Want
Overpriced?

When buying a home, a buyer generally has a set budget, and will want to find
homes for sale within his/her budget constraints. In many cases, the buyer will
already have a pre approved loan to find homes for sale within a specified
price range. This leads me to a point many homeowners fail to grasp when
selling their home. I'll use an example to explain.

If the seller's home is worth between $420,000-$450,000, then it follows, the
seller will attract buyers trying to find homes for sale in that price range. But,
here's what can happen...

The seller, lets call her Susan, searches the real estate listings in the local
paper to see what compares with her home. She has read of a couple of
homes for sale with similar features for around the $450,000-$470,000 price
range. So already she's thinking her home is in that price range.

Then, to her surprise, a neighbor (Jack) has just listed his house on the
market. Jack's house is worth about the same as Susan's. Jack is asking
$495,000 for his home.

Now, Jack's place is very similar to Susan's except it doesn't have a jacuzzi
and has very little in the way of gardens.

Immediately, Susan thinks that if Jack can get $495,000 for his house, then
her home would have to be worth at least $520,000.

What is happening is Susan is getting further and further away from what her
home is really worth.

You see - here's the problem. In Susan's mind, Jack is GETTING the
$495,000. The truth is, he is not getting, he is only ASKING...and there is a
major difference between the two.

This may sound kind of crazy but this is actually how many people price their
homes.

The fact is, when a home goes on the market, it is often overpriced. All those
buyers trying to find homes for sale in the $420,000-$450,000 price range are
not even going to look at Susan's home. Susan's potential buyers are
searching to find homes for sale in the $420,000-$450,000 price range - they
are NOT looking to find homes for sale at $520,000.

The end result is; Susan gets no offers, and those who do inspect her home
conclude it is poor value for money when compared to other homes on the
market a $520,000.

Now, if Susan had priced her home in the $420,000-$450,000 price range
from day one on the market, she would have attracted buyers searching to
find homes for sale in the $420,000-$450,000 price range. The buyers would
be comparing Susan's home against all of the other homes for sale in that
price range. If Susan's home were good value compared to the competition,
she would have a good chance of making the sale.

The problem is; by the time Susan realizes her home is overpriced, her
property will have been on the market too long. The rot will have set in, and
buyers may think there is something wrong with her property. In the mean
time, lots of new homes for sale have come to the market. She is now
competing with all these new homes for sale that are fresh on the market.

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Disclaimer: This real estate article does not give financial or legal advice.
When buying or selling real estate, or taking out a mortgage/loan, or
restructuring a mortgage/loan -  ALWAYS seek proper legal and financial
advice. See disclaimer below.
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