Home Pricing Mistakes Property Sellers To Avoid
Selling your home can be an extremely stressful process, with many pitfalls for the inexperienced.
By and large today’s buyers are well informed about property pricing and fair market value, therefore for the seller to ensure that you attract the right buyers -property needs to be priced accordingly.
Inappropriate pricing is the number one reason properties sit on the market for months and become stale inventory. Every seller wants to get the best price for their home -and with the right plan in place that’s very achievable. It is also important to know that your eventual selling price will vary from your initial asking price.
To achieve a quick sale, we at PropertyFox have compiled five common mistakes for sellers to avoid when pricing their home for market.
The biggest mistake a homeowner can make is to try counteract the negotiation process by inflating their initial list price.
An inflated price will leave out strong potential buyers, especially if statistics and recent sales figures of other properties in the area don’t support the asking price. The seller will run the risk of multiple price reductions, which could have the home sitting on the market for longer than necessary.
This can stem from an emotional attachment to the home. Many homeowners perceive their home to be the best in the neighborhood and set a price that is relative to the value they perceive. However, as buyers do not have this emotional attachment, they will not perceive the home’s value in the same way.
Doing your research is one of the most important steps, and one of the most commonly avoided stages of the process. Not doing your research leaves you in the dark when it comes to the negotiation process, but also puts you on the back foot when determining your initial list price.
So what kind of research needs to be done to price your home correctly? First off you need to look at past sales in your market area.
Disregarding Recent Home Sale Prices
When setting your list price, it’s crucial that you review current market conditions -including current inventory, homes under contract, and recent homes that have sold and come off inventory.
An experienced real estate professional will have access to this kind of information and will be able to provide valuable guidance to sellers when determining the right listing price.
If you are not working with an agent, this research becomes even more crucial. Basic research can be conducted online, it just becomes a matter of searching for previous property prices of inventory that has recently come off the market in your area.
An inflated price will leave out strong potential buyers,
Not Being Open to Negotiation
Deals die quickly if the parties are not open to negotiating. Multiple offer scenarios will happen regularly and you, as the seller, need to be able to pick the offer that best suits your needs. Often you only come to determining the actual best offer during negotiation.
By staying open to compromise it is possible to make any sale situation into a win-win for all parties. The question that the seller needs to ask is whether it is more important to get the full asking price (leaving the property on the market for longer) or to make a few concessions and close the deal quickly.
Not Performing a Comparative Market Analysis Through An Agent
It’s a common error to try save money, and avoid agent commission, by doing comparative marker research one-selves, but selecting a reputable agent with area experience will save countless hours of, possibly non-relevant, research. An agent will have access to resources and information that the homeowner will not.
Being their area of expertise, agents provide an unbiased opinion, looking at the situation from all angles, such as the home’s features, the local market, recent sales and many more that you as a first-time seller may not be able to anticipate.
Obviously, by dint of the fact that the property is being placed on market, the homeowner is looking to get the best possible return on their investment. A home can be priced for sale at any price you’d like but, that doesn’t mean it will sell at that price. However, if these common mistakes are avoided the property will sell for the best possible price, within the best possible time frame.