Pricing a home can be very tough. There are many variables involved. When pricing a home you need to take into consideration location, condition, amenities, size, age, condition and much more. Today appraisers are having to use not only sold comparables but also active and pending properties play a role in the value as well. Many sellers are emotionally attached to their home and it is hard for them to price their home properly. When selling a home you really want to do your research and see the advice and guidance of an experienced realtor. Here are some of the biggest mistakes sellers can make in pricing their home.
1. Pricing it too high to start and chasing the market down. Many sellers think it is bettwe to start high and work their way down to the correct price. In reality, you are only the new house on the market for a short time and the buyers out there have a very short attention span. If you are inappropriately priced in the beginning, you are wasting your most critical time on the market. Price your home according to current market value from the beginning and you will have a much quicker sale and most likely end up with more money in your pocket.
2. Pricing too high in order to leave room to negotiate. If youa re priced riight and you can prove it with comparables from past sales you can get very close to asking price. I advise my clients to leave a little room to negotiate but in reality it doesn't need to be more than a few thousand dollars.
3. Pricing the home too high because they are not in a rush and have time to wait. Many sellers start too high because they are not in a hurry. The days on the market clock starts the first day you put it on the market and is a ticking time bomb. One of the most frequent questions that I get asked is "how long has this house been on the market." If the home has been on them arket less than 60 days you are likely to get close to asking price. More than 60 days on the market and the buyers start to think the sellers are desperate and the offers tend to get lower and lower. After 90 days on the market there is lss than 1% chance that home will sell at all, unless there is a change in the price or condition.
4. You list with the agent that tells you the highest price. Most of the time sellers have a good idea of what has been going on in their neighborhood. If an agent comes in an tells you a high list price that gets you excited but seems unrealistic, you should be careful. I call this tactic "buying a listing." When some agents are put in a situation where they are competing with other agents to get a listing, they will tell you a higher price just to get their sign in the yard. They depend on you eventually getting frustrated enough to lower the price to true market value. Make sure your agent can show you how they got their list price and their reasoning makes sense.
A great way to avoid these pitfalls is to have an appraisal done when you put your home on the market. I love getting them done before we go live for several different reasons. First, an up to date appraisal will protect you against low ball offers. If a buyer's agent brings you an offer that is low and blames it on the comps you can show them your appraisal. You can also make sure you are not priced too low and leave money on the table during negotiations. It also ensures that you are priced right and you will ultimately sell faster and for more money. If you have a home you need to sel please call the Jen Burns Group with Keller Williams Realty First Choice. We would love to interview for the job of your listing agent.
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