Pricing is not a simple process, and sellers are prone to make mistakes that waste both their time and money. Make a speedy sale by avoiding these four pricing errors that sellers commonly make.
1. Lack of Research
Sellers tend to base their home pricing according to the homes on the market in their surrounding area. It is good to know what these homes are priced at but it does not serve as an indicator as to what YOUR home will sell for. Price your home based on a comparative market analysis, a report prepared by a real estate professional who looks at homes in your area that are comparable to yours. You may also want to pay for a professional appraisal done on your property.
2. Hiring the agent who offers the highest list price for your home
Always interview at least three agents and choose one who can back up the suggested listing price with comparable sales data.
3. Getting emotionally involved
No doubt you have invested a lot of time, energy and love into your home. Unfortunately, buyers will not have the same sentimental feelings towards the house. Do not let “What you think your home is worth” be a determining factor in the listing price.Be objective and do not get insulted when you are presented with a low-ball offer. Look at it as a starting point for negotiations that could result in the sale of your home.
4. Pricing to high from the start
If you overprice your home from the get go many buyers will overlook it because it will be out of their price range. By the time you reduce the property to fair-market value those home buyers will have already found a new home. Other prospective buyers may now be interested in your new price but will now be curious as to why the property has been on the market for so long and will begin to wonder what is wrong with the house. List your home competitively from the beginning. If you do not get any activity do not hesitate to lower the price. Work with your agent to assess the current fair market value of your home.