February 6, 2012 by Johnny Brooks | Edit
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When a homeowner starts the process of selling their home, their expectations are we want the maximum value, little inconvenience, no concessions and not much coin toward home improvements, then reality sets in. This mind-set is not universal, but a concept that happens more happen than not. The sell of a home does have a psychological angle. It has been shown in scholarly studies that what we own, we value more than what we do not own. For example, scientists took groups of subjects and ask what a nice cup is worth and they say $5. However, they gave a group of matching subjects the cups. Then they asked the same question, what the cups are worth, and they valued it at $8, mainly due to the ownership theory.
Similarly, when we own a property, we have an emotional attachment which distorts an objective view. Sellers decide to wait for their higher price. While this may appear to be a good idea, the higher offer may not arrive and it introduces a delay in a sale. They need to make an objective evaluation. With the housing market down, now is a great time to buy a property, but it’s only a good investment if the price is right. Sellers have to be logical and waiting for your price can often be the worst decision, knowing human nature is to increase the value of what we own. Enough with the psychology.
Homeowners feel their home is unique and put more emotion than logic into the pricing aspect. Sellers can control the initial asking price, but can’t control the eventual sales price. Sellers can make their home more marketable by creating price, condition and terms that fall into market trends. A real estate professional can evaluate the market and provide the knowledge, skills and tools necessary to determine an accurate assessment of fair market value. Homes that are priced too high miss their target market. Some sellers will take the “Let’s try it and see what happens” approach, we can always adjust the price later. This manuever will end costing the owner in the long run, since the first four to six weeks are the most important during the marketing stage. After this point, most buyers and agents lose enthusiasm, as other newer and better priced properties come on the market. The longer a home is on the market, the lower the selling price. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs and easy access to view local area homes for sale in Davis, California and the surrounding communities.