My goal is to make sure that your home sells quick and for the price that you are satisfied with.
I will have a detailed comparative market analysis to make sure your property is priced correctly
Home Pricing Mistakes and How to Avoid Them
I will clearly explain to you the costs associated with the sale of your home
I will offer you tips to prepare your home for sale
I will have a professional photographer take pictures of your house
I will advertise your property on the Multiple Listing Service (MLS) website, Craigslist, Google, and my website
I will arrange all the showings and open houses to accommodate you
I will negotiate and review all offers with you
I will keep you informed with regular updates
When selling a home, your pricing strategy can make or break your chances for a quick sale. Listing at the right price can almost guarantee that a buyer will swiftly snatch up your property, while listing at the wrong price can cause your home to sit on the market for months with not so much as a showing. Unfortunately, pricing is not a simple process, and sellers are prone to make mistakes that waste both time and money. Don’t let this happen to you; instead, make a speedy sale by avoiding these six pricing errors that sellers commonly make.
MISTAKE #1: Forgoing research
Without investigating past sales in the local market, sellers tend to base their prices on hearsay or on the listing price of the house down the street. Knowing the prices of your competition is important, but in many markets, listing prices are not a good indicator of what your home will actually sell for.
Price your home based on a comparative market analysis, a report prepared by a real estate professional that looks at recent sales of homes in your area that are similar to yours. For a fee, you can also get an estimate of your home’s value with a professional home appraisal.
MISTAKE #2: Hiring the agent who offers the highest list price for your home
If you ask several listing agents how much they think they can get for your house, and one gives you a significantly higher bid than the others, be cautious: the agent may be trying to “buy” your listing by suggesting an unrealistically high asking price. Such a practice is unethical and costs you time and money, as you will most likely have to slash the price after your home sits on the market unnoticed for many months.
Always interview at least three agents and choose one who can back up the suggested listing price with comparable sales data.
MISTAKE #3: Getting emotionally involved
You’ve likely spent a lot of time, money and energy transforming your house into your home, so it is natural to be emotionally invested in its sale. Unfortunately, buyers won’t have the same sentimental feelings for your home as you do, therefore, what you think your home is worth, should not be a factor in determining your listing price.
Stay objective during the pricing process by focusing on statistics generated by the CMA. Do not be personally offended by lowball offers. Instead, think of them as the starting point of a negotiation that could result in a sale.
MISTAKE #4: Pricing too high from the start
First impressions are very crucial when selling your home. The first 10 days after you implement a listing into the MLS are the most important because that is when it is going to generate the most activity.
If your home enters the market overpriced, there’s a good chance, many buyers will overlook it from the get-go because it will be out of their price range. By the time you choose to reduce the price to fair market value, many potential buyers will have already found something else. Other buyers may initially be interested in your newly lowered price, but they will also see that your home has been sitting on the market for a fair amount of time, which could lead them to believe there is something wrong with the home.
Price your home correctly the first time in order to gain the attention of serious buyers and therefore, sell faster. If getting less money for your home is not an easy thought to bear, consider all of the costs associated with homeownership that you’ll have to pay if your home sits on the market for several months at an unrealistic asking price.
MISTAKE #5: Overpricing because you have “time”
Sellers who aren’t in a hurry, often decide to test the market by listing their homes at a higher price and waiting to see where the market goes from there. But in most markets where home prices are dropping, waiting it out may actually cause you to lose money.
It is key to price properly right away because you have a greater chance of selling if you are just on the market. Everybody wants something that is brand new, has not been shopped around, and not on sale.
Sell your home faster and possibly for more money by pricing your home based on current home values.
MISTAKE #6: Chasing the market
If you list your home too high to begin with, you may find yourself having to make incremental price drops but never quite catching up with the market.
For instance, the sellers insisted on putting their property on the market for $250,000, despite the fact that comparable homes in the neighborhood were selling for around $225,000. After four months had passed and without any showings, the sellers finally decided to decrease the price to $225,000. However, home values had declined significantly during those few months, so the reduced price was still four months behind the market. Since then, the sellers have been reducing the price on the home about every three months, but never catching up with their competition.
When a home has had multiple price reductions, it appears not only to be stale, but that there’s something wrong with it.
How to Sell Your Home in a Buyers Market
List your home competitively to begin with. If you don’t get any bites, don’t hesitate to lower your price. Work with your agent to reevaluate market conditions and determine the fair market value of your home.
#1 Prepare yourself mentally
Accept that the market will set the sale terms. Do not take it personally if you don’t get the price you expected. Remember it is just business…
#2 Be flexible
You can be flexible on things besides price. Offer a potential buyer flexible moving dates or space in the garage to move in a few belongings earlier. You never know what people may want to do to make it convenient for them. If the buyer wants something that isn’t hard for you to give, that’s something in your favor. If you have flexibility you have an edge. Buyers may make a low-ball offer to see what your reaction is. Remember this: Emotion is the enemy of flexibility, so keep emotions out of it.
#3 Hire a home inspector
Sellers are strongly advised to consider getting a pre-sale home inspection, especially if their home is older or in need of repairs. They can either use a clean home inspection report as a selling advantage or take care of the repairs listed on the inspection report.
For more tips, feel free to email me with your questions or thoughts.