Good Real Estate Question of the Week.

What's the worst mistake a seller can make? 

Overpricing your home can be a big mistake.

When the average seller sits down to interview real estate agents, it's easy to get caught up in the excitement of choosing a sales price. More money means more financial opportunities for the homeowner. Unfortunately, uninformed sellers often choose the listing agent who suggests the highest list price, which is the worst mistake a seller can make.

The truth is, it does not really matter how much you think your home is worth. Nor does it matter what your agent thinks or ten other agents just like him/her. The person whose opinion matters is the buyer who makes an offer.

Pricing homes is part art and part science.  It involves comparing similar properties, making adjustments for the differences among them, tracking market movements and taking stock of present inventory, all in an attempt to come up with a range of value, an educated opinion.  This method is the same way an appraiser evaluates a home. No two appraisals are ever the same; they are generally close to each other. In other words, there is no hard and fast price tag to slap on your home. It's only an educated quess and the market will dictate the price.

Protect yourself:

The question is how much money will an expired listing cost the seller?  The financial loss often exceeds the extra mortgage payments paid and goes beyond the hassle factor of trying to keep a home spotless during showings. The home is now stale, a market-worn home that was overpriced for too long. Don't be the seller of an expired listing. Rely on a realtor who knows the local market and is experienced in selling homes in your area.

Check out this link to about.com home buying/selling for more information.