4 Common Pricing Mistakes To Avoid When Selling Your Home
Pricing is the number one reason homes don’t sell or sit on the market for months and become stale inventory. Every seller wants to get top dollar for their home and with the right plan in place that’s very achievable. However, there are pricing mistakes sellers have to avoid in order to achieve the top dollar goal.
Pricing Your Home Too High – this is the most common mistake we see. Homes that are priced too high will be passed over by buyers. You might get showings but, if offers don’t follow there’s a problem. Buyers and their agents know the comparable sales and if your home is priced well beyond where other homes have sold in the area they’re not going to want to buy your home. Think of your home as a loaf of bread, would you pay top dollar for stale bread? Most likely not. As your home continues to sit on the market it becomes less and less appealing.
Not Basing Your Price on Comparable Sales – a home can be priced for sale at any price you’d like but, that doesn’t meant it will sell at that price. Your home is only worth what a buyer is willing to pay. This goes back to buyers and their agents knowing what comparable homes have recently sold for. Work with your agent to properly price your home – review current market conditions including current inventory, homes under contract, and recent homes that have a sold and closed.
Odd List Price – browsing for homes for sale online is where most buyers start their home search. Think about how websites are setup, they have price windows to select different ranges as part of the search criteria. Those ranges are even numbers. By pricing your home with an odd list price such as $432,288 you might miss a buyer that entered $430,000 as their maximum price. An experienced buyer’s agent will extensively search and might find it for their client but, why take the chance that they miss it?
Refusing to Negotiate – not all sellers will have to negotiate. Multiple offer scenarios happen regularly and if you’re a seller in that situation you will likely be able to pick the offer that best suites your needs but, more often than not sellers need to be prepared to do some negotiation. Don’t chase off a serious buyer by digging your heals in. There’s always a way to make it a win-win for both parties but, that can only happen if you stay open and are willing to compromise.
If you avoid these common pricing mistakes your home will not only sell faster but, it will also sell for more money. Arriving at the correct list price is a key component to a successful sale. Hire an agent that has a proven successful track record selling homes in your area. They will carefully review their research with you and explain in detail how they’ve arrived at the suggested list price.