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Kathren Rusinovich
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Broker
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AREA Properties
1490 Commercial St., #100
Astoria, OR 97103
(503) 325-6848 Office
(800) 325-6840 Toll free
(503) 325-7577 Fax
E-mail: Kreal@pacifier.com
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Reasons Why Sellers Overprice
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- Ego Involvement
- Sellers tend to believe their property is unique. Their emotional feelings about the uniqueness of their property lead them to overprice it.
- Market trends have no relevance
- This again is an emotional response. Many sellers think that because their property is unique, it will not be affected by the market and what other similar properties have sold for.
- Misinformation
- Often sellers become the victims of misinformation, and end up overpricing. The sources of such misinformation include friends, relatives, neighbors, other agents, etc.
- Costs and appreciation
- Usually sellers overestimate the cost of their property and the appreciation in its value. In selling the property, they price it to recover the cost and appreciation in its entirety.
- Recapture all the improvement costs
- Sellers like to recover all the costs they have incurred over time in property improvements. Usually they inflate these costs and end up overpricing.
- Financial needs determine value
- Rather than realistically pricing the property based on facts, many sellers relate the price to their needs. Thus, if their needs are high, they set a high price for their house.
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