Rational Self Interest of course! Adam Smith is my favorite philosopher and economist. And though he hasn’t been around for 200 years or so, his theory is relevant to selling Lakes Region real estate in today’s market.

The rational objective of putting a home on the market is to sell it in the most efficient manner. Over-pricing is the biggest barrier to an efficient sale. Common reasons for over-pricing are:

• Unreasonable expectations
• Sentiment – the seller’s inability to view the property as a simple commodity
• Listing agent inexperience

One the other hand, if a home is priced below market value the home will receive buyer attention and multiple offers which in turn drive the sale price to the true market.

Lengthy listing (of several months or years) and recurring price reductions always damage a property’s perceived value to the buyer pool. It is better to eliminate these harmful impressions with an initial accurate appraisal of the property.

Apply your own Rational Self Interest and you’ll avoid over-pricing by interviewing a number of experienced lakes Region Realtors. Be aware that the Realtor who presents the highest suggested listing price might be counter-productive to your goal.

Tuftonboro NH Real Estate - Waterfront Living on Cow Island Beyond the charm of the rustic yet luxurious amenities (expansive decks, cathedral ceilings, stone fireplaces and skylights), this Adirondack style home’s magic is in its location: the property is only accessible by boat. Imagine island living within driving distance of Boston! This exquisite property is very well priced at $829,900

Lake Winnipesaukee Waterfront Home - Alton NH The kitchen and living room and this luxurious 6000+ square foot lakefront home are right on the waterfront. Each room affords spectacular natural views; granite and hardwood finishes throughout emphasize the closeness of nature. Beach rights and a one-of-a-kind boathouse make it the quintessential Winnipesaukee waterfront home.

Tags: Adam Smith, Lakes Region, market value, overpricing, property appraisal, selling real estate

This entry was posted on Tuesday, November 10th, 2009 at 1:38 pm and is filed under Selling Lakes Region Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.