Don't Make These 4 Home Pricing Mistakes
Wednesday, October 11, 2017
We all make mistakes. We’re human; it happens. But when it comes to the real estate market, and selling your house, mistakes are the last thing you want to make.
Unfortunately for many people, selling a home becomes a stressful process that is made of nothing but mistakes. How many people have you talked to who’ve mentioned a regret they have about the company they used, the time of year they listed, or the price they got?
Pricing mistakes are common, but can be avoided. Keep clear of these home pricing mistakes to have the best chance of selling your home at a price you’re happy with.
1. Skipping Research
Doing your research is one of the most important steps, and a lot of people who are selling their home by themselves don’t do it. This is one of the biggest pricing mistakes.
So what kind of research needs to be done to price your home correctly? You need to look at past sales in your market area; this will give you a starting place.
You also need to look at houses similar to yours, and factor in condition, location, and the state of the market when pricing your home.
We use comparative market data and our years of experience to make sure that we set the best price from the beginning, giving your home the best chance to sell.
Tip: Part of pricing your home is finding out how much it’s worth. We can provide you with a free online appraisal.
2. Hiring the Wrong Kind of Agent
So many agents will try to get your business by promising to attach the biggest price tag to your home. The problem is that many agents don’t do the necessary homework and don’t have the data to justify setting such a high price. This will lead to nothing but disappointment.
These wild promises raise your expectations. When that agent doesn’t sell your home quickly or for as much as they promised, you’ll understandably be upset. After all, there’s a good chance your home has sat on the market for a long time - which discourages buyers - and you’ve had to drop the price a few times. You’ve wasted time and money.
It’s natural to want to sell your home for as much money as possible; that’s what we want, too! Our goal is to get you the most in the shortest amount of time. But in order to do that, we look at all the factors, and set an asking price that’s realistic.
A house that is professionally inspected, appraised, and priced has a better chance of selling.
Tip: A house with a realistic price could attract multiple buyers - maybe even a bidding war. That means that you’ll likely sell for over the original asking price. While this isn’t a guarantee, it is a possibility.
3. Making Your Initial Price Too High
There are few things that can affect your sale like a home pricing mistake. And one of the big ones is making your initial price too high.
When your home is overpriced, you immediately cut out a big group of buyers. Instead of looking at yours, they’ll be looking at comparable homes and finding them in their price range.
This means that your home will be sitting on the market longer, and that’s a big red flag for a lot of people. Even if your home is in perfect condition, a home that has spent months with a ‘For Sale’ sign in the yard screams ‘problem house’ to people looking for something move-in ready with no issues.
It will also end up costing you money. The longer your home sits on the market, the longer you have to pay homeowner and upkeep costs. Setting a high-selling price comes with its own costs.
Tip: We offer a seller’s guarantee - if your old home doesn’t sell before you take possession of your new one, we’ll buy it! The price for a guaranteed sale is agreed upon at the time of the initial listing.
4. Becoming Emotionally Involved
It’s important not to confuse actual market value with emotional and sentimental value. Many homeowners believe their home is worth a lot more because of the all the TLC they’ve invested over the years.
When you’ve poured your heart, soul, and money into something, it becomes much more valuable to you. Unfortunately, buyers will not see your home through the same sentimental goggles.
This is one more reason a real estate agent is beneficial to the selling process. They’ll be able to look at your home objectively, which will be reflected in the price.
We’ll Help You Avoid Pricing Mistakes
Pricing mistakes are entirely avoidable when you have the right support behind you. We’ll not only accurately price your home; we’ll market it to the right buyers, giving it the best chances to sell.
Thinking it’s about time to list your home?
The Paul Rushforth Team
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