Factors Which Do Not Influence Value

You May Need More Equity Than You Have.
An owner's need for money does not increase
the value of a house. Your need to pay off credit
cards, cover a home equity line or even pay for a
college education will not influence what a buyer
is willing to pay for a home such as yours within
your neighborhood.

You May Have Invested In Repairs And Improvements.
Improvements should be made for enjoyment, not just for resale value. You cannot add an item to
your home, use it, and then expect the buyer to pay full price for it. Repairs are a normal part of home ownership. Replacing a roof or putting in new carpet simply returns the home up to normal expectations.

Prices Of Homes Where You Are Moving.
Prices are greatly influenced by location and
demand. The exact same home is going to sell
for much higher in Beverly Hills than Provo. Just
because you are moving to a higher priced area
doesn't make your existing home worth more.

Refinance Appraisal
Appraisals, along with your good credit, are tools
used by lenders to insure that there is enough
security to give you a loan. Refinance appraisals
often vary considerably from the price a buyer
is actually willing to pay for a property when
purchasing it.

Dangers of Overpricing

Miss The “Window Of Opportunity”
The excitement is highest during the first few
weeks a home is on the market. In essence, there
is a window of opportunity where all the Realtors
and Buyers in the market are excited to see your
"new" listing. If your home is overpriced during
this critical window, it is difficult to generate that
excitement again.

Perception of Being “Stale”
The perception once a home has been on the
market for a period of time is that no one else
wants it. It becomes "stale". Just like merchandise
on a rack at a department store which has been
looked over, buyers expect to pay less.

Takes Longer To Sell
It's a simple fact that homes priced above the
going market take longer to sell. In fact, if you
price your home too far above the market value,
no amount of exposure and time will sell it.

Ultimately Sells for Less
Starting out high to test the market and then
periodically reducing the price causes a property
to become stale. By the time a home is finally
reduced to the true market value it may be too
aged to attract a full-price offer. Have you ever
asked how long a property was on the market? If
it had been quite some time, what conclusion did
you draw?

House Never Sells
Of course, the greatest risk of overpricing a home is that after months of inconvenience and stress, it doesn't sell. As a rule, a buyer simply will not pay more for a home than its market value.

Be Sure to check out our other
Seller Reports for free that include

8 Curb Appeal
Major Improvements
Marketing Strategies
Presentation Appeal
What is Market Value