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Selling Your Home Below Market Value

Home-For-SaleSelling your home is embraced by many homeowners due to its potential profit generating outcome. However, there are times when homeowners need to sell their home quickly, and list them below market value.

Market Value

The market value of a home refers to the price that it would fetch in its’ specific market. Certain market values will include the appraisal and the assessed values. If you’re looking to get rid of your home quickly, placing it below market value will attract a significant amount of buyers.

Overpricing Risks Languishment

By overpricing your home, there is a risk that it will languish on the market, subsequently forcing you to lower the price. Once buyers start to see the price lower, there is a chance that they continue to “bite at the line” until they start to see a price that’s basically a discount.

Buyers want the most for their money. Being that a home is one of the most costly purchases one will make in their entire lifetime; it’s fair to say that you should consider this as one of the most important business transactions that you’re going to handle in your personal life. Take care that you accurately price your home to avoid losing out on potentially thousands of extra dollars.

Short Sale

A homeowner listing their home as a short sale home will sacrifice roughly 20% of their profit in order to sell their home quickly. This tactic is generally used when a homeowner is in dire need to get rid of their property.

Bio: Kuba Jewgieniew is the head of Realty ONE Group, an American real-estate brokerage firm with offices in Irvine, California.