I call them “Counter-intuitive” because, when put in similar circumstances, most consumers make the wrong choice.  Common sense almost always leads you in the right direction.  The following are a few examples of when it’s not best to follow your gut:

1) Starting with a lower price just might net you more money.  Most folks want to start at a higher price and lower the asking price when there’s little or no interest.  I can appreciate your strategy.  You want to make as much money as possible, and you think there’s a chance that somebody just might buy your home if it’s only 1% or 2% overpriced.  Wrong.  In this market, if you’re 2% overpriced nobody will even look at your home.  Starting with a lower asking price is key for generating buzz about your home, and just might end up in a bidding war that nets you more than what you wanted to start with.  Even if it doesn’t, at least your home will sell.

2) Staging is expensive, but you’ll most likely make a profit on it. When asked whether or not they would be willing to spend roughly 1% of the home’s value on staging, most home owners will tell you no.  On a $300K house, that’s $3000.  It’s a lot of money.  However, it’s also less than your first price cut will be.  And, the $3000 spent is likely to make you $10K, $15K, or more in net profit at the end of the day.  Simply put, staged homes sell faster and for more money. 

3) Conducting business with family is a bad idea.   Just because cousin Earl is a Realtor doesn’t mean that you should choose him to sell your home.  Why not?  Because he knows you.  You eat Thanksgiving dinner together. Surely you won’t mind if he blows off the open house to go play golf, right?  Or worse yet, what if he caves in to your absurd pricing strategy because he doesn’t want you to throw sweet potatoes at him during your next holiday gathering.  You need a professional, objective Realtor who will look out for your best interests, even if you don’t want to hear the truth. 

4) Selling FSBO will not save you money.  After it’s all said and done, it will probably cost you money.  You’ll start with a price that’s too high, and probably for a good reason.   Since you don’t know what the home is worth, you’ll take the amount that you bought it for, add $50K for good measure, and then total up all of the money that you spent on upgrades and viola!  Unfortunately it doesn’t work that way.  I wish it did.

Then, when nobody is interested, you’ll end up lowering your price into oblivion.  I’ve seen it a thousand times. 

The items might seem contrary to common sense, but they are absolutely true.  Being “street smart” doesn’t always help you get your home sold after all. 

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