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The (Home Valuation) Price is Right

A seller’s biggest mistake is to over- or under-price. Equal parts art and science, home valuation involves comparing similar local properties, It also requires tracking market movements and taking stock of present inventory.

If a home is priced too low, the seller should receive multiple offers. These offers may drive up the price up to fair market value, but rarely higher. Hence there is some potential financial danger in pricing a home too low.

Pricing your home too high is riskier business. Overpriced homes tend to sit on the market for months longer than they should. When this happens, when the home finally does sell, it’s likely to bring in less than market value.

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