Everyone has heard how important location is regarding business location, or location for a residence. Close in neighborhoods offer a degree of convenience that can be an asset. However more important than location is price. Just about any home in the Austin area can be sold if the price is right. Unfortunately some sellers have unrealistically high expectations for how much their house will sell for. Having a real estate professional help you price your home correctly will help you avoid over, or under pricing your home.
I recently started watching a property I had noticed on the market. What caught my eye was the asking price. I also noted the price the home was sold for a few years ago. The home was listed for over $100,000 than the owner had purchased it for. I noted the current owner had only bee in the home for two, or three years and no major improvements, or renovations had been made. At best and according to the comps I noted in the area, this home should have been listed for perhaps 12% higher than owner asked for. That 12% percent is assuming an appreciation of 4% per year, which for the area is probably a little high.
When a buyer lists their home at a price that far outstrips the norm for the area, that buyer faces two prospects. One is having the house sit on the market for many months, or having to make significant reductions in price in order to sell. In the case of this particular home, the price has been reduced six times in six months. One, or two price reductions usually is not a problem. However three or more price reductions sends negative messages to prospective home buyers. The best thing to do before you have your home listed is to employ a trusted real estate agent and listen to his, or her advice on pricing. That agent will be able to look at what the trends are in housing prices. That agent will also tell you thathousing prices are generally dependent on what comparable homes have sold for in that specific area. Home price averages can vary by neighborhood, or even by block, or street in some cases. The well trained real estate professional can advise you on the best listing price for your property.