Why do homeowners always value their home above the market?

por Xarxa · 12 Abril 2024

In the world of real estate, everything swings like a great pendulum. At times, we are booming, with demand soaring and sales at their peak. But at other times, things slow down and the pace of transactions slows a little.

While attracting new properties is vital, there are always challenges when it comes to negotiating with selling owners. Why? Because we often hit the same rock: setting the asking price.

Setting the selling price 

It is common for homeowners to overvalue their properties for a variety of reasons. Some argue that their home is unique, nicer, better laid out, recently renovated, or has exceptional features such as stunning views or a prime location. In short, many believe their home is the best on the market.

Setting the optimal selling price is hampered by the seller's discretion and the sources of information used to support their valuation. Many homeowners base their price on observing sales in their area, consulting real estate portals and receiving feedback from friends and family. However, this information may be biased and not reflect actual market value.


Offer price and the actual selling price

The distortion in pricing is exacerbated by the difference between the offer price and the actual selling price. Often, owners set inflated prices, believing in the popular idea that the value of the property is always increasing. This gap between the seller's expectation and market reality can lead to frustration and conflict during negotiation.

To address this challenge, real estate agents must have up-to-date data and professional tools to support their analysis of the market. It is essential to conduct constructive and transparent negotiations, based on solid arguments and presented with honesty and empathy towards the client.

Successful negotiation depends on the balance between objective market analysis, the agent's persuasive skills and the ability to establish a human connection with the client. Ultimately, reaching a mutually beneficial agreement requires a collaborative and service-oriented approach.


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