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A Guide For Sellers: How The Perceived Value Of Your Home Decreases Over Time

April 19, 2012 | Comments: 0 | Views: 120

Do you wonder why some people buy a home and sell it later? Especially for people who are not well-versed in real estate investing, the buying and selling of a house just doesn't make sense. Here's one fact that you must realize: investing in properties like houses can actually make you richer. So don't let the opportunity pass-try investing in properties so that you can benefit from its earning potential.

To make the point above much clearer to you, what follows is a thorough explanation of the dynamics of buying and selling a home. Buyers and sellers have contrasting and often conflicting goals. A buyer wants to get the most affordable home available, while a seller wants to sell a home at the most profitable price.

Only a few sellers realize that extended marketing time does not lead to a higher sales price, except when the market is active and the prices are going up. More time on the market, in fact, decreases the sales price and the perceived value of the property. As a result, the amount that buyers will be willing to pay for the house changes as well.

The ideal time to sell a property is two weeks from the initial listing period. After that, the perceived value of the property will start to decline. And as time progresses, the perceived value drops consistently and sellers have no choice but to lower the price of their property if they want to close the deal right away.

The dynamics of buying and selling properties is often misunderstood. If you are a real estate seller, then the right timing to gain as much profit as possible is when there is much buzz and excitement coming from your potential buyers. It is people's natural urge to follow what the crowd wants or the so-called bandwagon effect that drives people into buying something. That's simply how human nature works, so it is best not to linger for too long if you don't want your marketing efforts to be put to waste. You can take advantage of that phenomenon to get the most out of your investment. Remember, it is the strategy that makes your game a winnable one. But sadly, a lot of sellers do not understand this simple sales dynamic, so they end up wasting money more than earning it.

Right timing is indeed everything when it comes to real estate investing. If you don't grab the opportunity to earn huge money from selling your property, then you are bound to lose it forever. Once that happens, you are left with no choice but to sell the property at a much lower price just so you could let it off from your hands. Thus, it is important that you remain focused on selling your property while the listing is in its early period and your potential buyers are still interested in it. Don't wait until the perceived value of your house diminishes. That way, you make good use of your time, effort, and investments.

Peter Jordan is a realtor with Prudential NJ Properties in Westfield, New Jersey

Source: EzineArticles
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