I have been a Realtor in Rhode Island for quite awhile. I am not sure when I read this, but at least 10 years ago, I read a blog about selling toothpaste from someone here in the ActiveRain community. This blog featured Disney, free tickets, lots of hype about a particular tube of toothpaste. The price for the toothpaste was pretty high and not what you would normally want to pay.
The whole point of that blog was that no matter how hard or crazily you advertise something, that toothpaste was not worth the price!
We hear Location, location, location all the time. Well yes location can add or subtract value and appeal. That's a fact! However, if location has already been taken into consideration when pricing and its not selling, then the one and only reason is PRICE!
I belong to numerouse Real Estate Groups, across the county, all looking for reasons of why a listing is not selling. Staging is brought up regularly. Initial curb appeal. The right photography. Making sure it is all over the Internet and a sign in front. Paid home buyer magazines and ads. Everything is exactly what you are supposed to be doing as an Agent or Seller. But its not selling! Some may not agree with me and this is my opinion only from a lot of experience of my own and watching millions of other houses through the years.
It's always about the price! One way to look at this. Say you have a house to sell. Ask yourself what price do you absolutely know that house will sell at. Say its a house in the $500,000 range. You may say well, I know for sure it will sell at $100,000! Actually I know for sure that people will be stumbling over themselves to offer me more, just to get this $500,000 house so cheaply! Then work your price up from there until you are saying to yourself. "I'm not sure if it will sell at this price point." Then you are done. If you are not sure then you actually ARE sure!
Pricing your home higher than market value because of any of the following reasons is the best way to keep your home!
1. I really don't want to sell. I'm just trying to see if someone will offer me way over market value!
2. Let's just throw that price out there! The market is hot right now. People are crazy!
3. I really need this price point because I have bills that have to be paid from this house sale or I need the money for the down payment on my next home.
4. I paid over this price point 10 years ago when the market was hot. Isn't it a hot market again?
5. I've put a ton of work into this house and I want my money and time back
Hopefully, if you are reading this, you can see the folly of the above statements. Here is a little clarification.
1. Buyers are on the Internet daily and they already know your market value is lower
2. The market has not risen to the same bubble prices that it did 10 years ago, and if it does, there are a lot more wary buyers who do not want to move in and get foreclosed in three months.
3. What you need has nothing to do with what you can sell for.
4. See item 2
5. When you do regular maintenance and upgrading on your house, you keep it at a normal appreciation rate. You do not "get back" what you put into it. In fact there are numerous sites on the Internet that can help you with this. Your Realtor can help you with this. Also, what you think is an upgrade, may not be the same taste as potential buyers.
Bottom line when listing your home to sell.
1. Clean it (less is best)
2. Stage it
3. Make it available. (people do not want to wait until next week to see it)
4. Make sure it's being advertised correctly by your Agent and that the photos are good
5. PRICE IT CORRECTLY!
The whole point of putting your home on the market is to sell for the best price possible.
A Realtor who does this for a Living is who you need to contact. That's me!