Call it lack of knowledge or just a perception, but most home sellers focus on the wrong number, Selling Price.  The misconception is that they believe the difference in selling price minus real estate fees and mortgage payoff is what they will walk away from the table with.  They don't understand that there may be costly repairs for the home inspection, the buyer will likely want a home warrantee or that their home needs cosmetic improvements in order to compete with other offerings.

In this buyers market there are lots of homes to choose from and most sellers must reduce their asking price one or more times before they sell their home because it is not competitive with other offerings.  Is this because we have set the wrong expectations and they are focused on the wrong number?

We believe the seller should be focused on the Net, but the realistic Net and not what they think the home is worth.  Your CMA is not enough and even if you do an absorption rate to estimate days on market you may still be setting up your client for a reduction in their net.  Let's face it, most home owners believe their home is worth much more than it really is.  Here's what we recommend:

Get an appraisal.  This is the best indicator of what the home will really sell for and as an added bonus the appraiser will measure the home for an accurate square footage.

Pre-Inspect the home.  This way there are no surprises and the owner has an opportunity to make repairs in advance.  This should include a termite inspection unless they are under a bond.

Consult a Home Stager.  Depersonalizing the home will make it more appealing to more potential buyers.

Buy a Home Warrantee.  Reassure potential purchasers that even if issues arise that were not on the home inspection, most of these will be insured.

So now your seller is really concerned that the cost of these services will reduce their net, but the reality is that the first price reduction will likely cover all of these items.  Their days on market will be drastically reduced and their "NET" will be greater.

Setting the right expectations is always the key to a good listing and today that is more important than ever.