Top 5 Home Pricing Mistakes to Avoid
A lot goes into the listing of a home and effective pricing of the home will be the most determining factor of how well it does, or should I say, how quickly it sells and for how much. There are a lot of mistakes that homeowners make when pricing their home and a lot of that is due to the Real Estate Agent they choose.
The Real Estate Agents job is to educate, and be there as a resource for the homeowner. Real Estate Agents not only have to provide intelligent suggestions to homeowners on home pricing, but they also need to be there armed with concrete information and a gentle nudge when homeowners loose sight of their main goal in putting their house on the market – selling it.
I’ve put together a list of the top 5 most common mistakes that homeowners make when deciding to list and price their home:
1. Pricing too high from the start – whether you have decided to price your home above market value to allow more room to negotiate or because you are not in a rush, do not make this mistake. The most action a property will see will be within the first two weeks of listing it. After that, interest in the property falls and you may have missed the opportunity to capture the right buyer. Price your home competitively from the start to attract as many buyers as possible and increase your odds of receiving not only a good offer but a competitive one.
2. Not being realistic about negotiations – As a home seller you should expect for the most part that any buyer will want to do at least some negotiation. Now, there are obviously times when this won’t apply, like what we experienced with this year’s Spring market, where homes are selling for well over asking price. This is unfortunately not the norm and can only be sustained for so long. In a regular market, homes typically tend to sell for about 98% of asking price, keep that in mind so you don’t have unhealthy expectations of what your home should sell for.
3. Not researching sold homes in your area – I hear a lot of clients say, "well the house down the street is currently listed for $XYZ amount so we should list at that price too." Instead, base your pricing on recently sold homes – this will tell you exactly what a buyer was willing to pay for a home and then adjust your price point from there. A currently listed home is only telling you what a seller wants to sell for, not what a buyer is willing to pay.
4. Hiring a Real Estate Agent who offers the best price – When you are interviewing potential Real Estate Agents, which I fully encourage, don’t just choose the Real Estate Agent who says they can list your home for the most money. Be realistic and don’t make the decision on the highest price. If that agent’s price is well above the others, chances are, that price is not achievable. Instead, choose a realtor that offers you the entire package, from correct pricing, to exceptional customer service to top notch negotiating skills. Trust me, you need them all!
5. Not having a Comparative Market Analysis completed – Many agents, including me, will offer you a FREE Comparative Market Analysis to provide you with the most in depth information on pricing your property. This will give you an opportunity to have access to a Real Estate Agents full arsenal of information and provide insights to your neighbourhood and the market you wouldn’t have otherwise.
Why not call me today to book your FREE Comparative Market Analysis so you can make the most educated decision regarding your largest and most important investment.
