1. Comparing the physical aspects of a property in one neighborhood to a physically similar property in their own neighborhood.
It’s a bad idea to feel you know what a property is worth by comparing it to something in your own neighborhood. Whether you’re the buyer or seller you run the risk of losing money and/or valuable time. If you’re selling a home for under its value, you’ll know when. People will be rushing to get an offer accepted. The last thing they want you to do is to talk to another buyer. If they can get you to accept an offer before your first open house, they know they’ve won. You might be clueless because homes of that size in your neighborhood are selling for 350,000$. You thought to yourself, it has the same number of rooms, similar lot size, and similar condition. Let’s hurry up and put this on the market. However, your buyers who are very familiar with the area see properties in the neighborhood selling for 450,000$. Unlike your neighborhood, this one is just outside the city and experiencing growth. Overpricing property simple waste a lot of time. When no one shows up to your open house and offers don’t go through, the message should be clear. While some properties, just need a little more time to find the right buyer, others are simply overvalued. External factors need to be taken into account.
2. Giving the city or town stigma too much weight.
“It’s a bad Neighborhood.” At least, that’s what you heard. In addition, you saw a few stories on the 10 o’clock news. However, the truth is every city or town has separate communities. While some of these communities or events might give a city a bad stigma, don’t overestimate them. People who have actually driven through and seen the individual communities know they’re not all the same. In addition, there are those who haven’t even heard of the city or town who are completed unaffected by the stigma.
Point being there’s not a single factor that determines the home's value. Be sure to hire a realtor that’s familiar with the area or one that’s willing to do a lot of research.