Setting a sale price for a home takes much thought and consideration. Priced too high and the home will linger on the market and not sell. Your pricing strategy can either make or break your chances for a sale in a short amount of time. Here are some mistakes to avoid when setting the sale price with your real estate agent:
Pricing High (to leave room to negotiate)
This type of strategy does not work. Buyers have done their research and know what your home should be worth. If your home is overpriced, they will not look at it because they see this as a waste of time. Ultimately you will have to lower the price and lose time on the market. Statistically, the number of views to a property drop considerably after the first 30 days. Overpricing ultimately results in less showings and views. By pricing your home correctly from the start, you will get the attention of serious buyers.
Lots of Time to Sell – No Hurry
Pricing a home high with no time schedule is not a good marketing plan. Your house will sit on the market for a long time since it is not priced correctly. As time passes, buyers will wonder what is wrong with your home since it has not sold. Your “stagnate” home will not look special to buyers and will be past its prime for selling.
Pricing the Home without a Comparative Market Analysis
Your agent will take the time to research the real estate activity near your home and provide you with a comparative market analysis. This report is vital in assessing what the correct selling price should be and will include nearby past sales history as well as an overview of the current competition of homes for sale. Anyone can pull a price of a home out of the air – statistics show what the true value should be. This type of analysis will also help reduce the chance of your home coming in under value for appraisal.
Hiring the Agent Who Offers the Highest List Price
If a sales agent suggests a significantly higher price for your home, you may want to be cautious. If the price is unrealistically high, your home will sit on the market and not sell. Always ask for comparable sales data that substantiates that list price.
You Spent So Much Time on Your Home
If you have spent a lot of time and money making changes and updates to your home, you may have strong feelings about your home’s personal value to you. Unfortunately, buyers will not have those same emotions for your home. You need to stay objective and focus on your agent’s statistics from the comparative market analysis as to the true value of your home. Remember, your remodeled kitchen will add value, but you will probably not recoup 100 percent of its cost.
But Zillow Said
When pricing your home you cannot rely on unreliable sources such as Zestimates or a county appraisal. These analyses are not as accurate as your agent’s research for the real market value of your home.