Six Pricing Mistakes Every Seller Can Avoid


If you’re getting ready to sell your home, you want to get the most money for your investment, right? One of the key factors that will sell your home is price, and having a sound pricing strategy is a must if you want to find the right buyer.

Here are six common pricing mistakes all sellers should avoid.

 

1. Overpricing from the start – You might think your home is the best on the block and should command a price relative to the value you see. Wrong. You have to appeal to the value homebuyers see. Overpricing your home at the onset could leave out strong potential buyers, especially if recent sales and other factors in your neighborhood don’t justify your listing price. You also run the risk of needing multiple price reductions, which keep your home on the market that much longer.

 

2. Leaving out potential buyers in online searches – Entering a price range is the first search parameter most homebuyers use to narrow down their options. If a buyer’s price range is, say, $250,000 to $300,000, they won’t see your home if it’s listed at $305,000. It might make sense to list it right at $300,000 so that you capture potential buyers in the ranges above and below. Ultimately, this is up to you and your agent, but the range your home's price falls into is certainly worth thinking about – especially if you're teetering between price ranges anyway.

 

3. Not considering recently sold properties – To arrive at a listing price that will generate buyer interest, you can’t base your price solely on the prices of other homes in your area that are listed for sale. You also need to consider recent sales in your neighborhood and the final sale prices. An experienced agent can provide you with information on recent sales to help you see the bigger picture.

 

4. Getting too creative with your asking price – Make it easy for buyers and pick round numbers. Listing a home for $512,477, for example, will give potential buyers pause about your intentions and divert attention from your property to you, as the seller. Maybe it's best to save the creative juices for the property description.

 

5. Not being open to negotiation – The quickest way to kill a sale is to dig in your heels on asking price before the for-sale sign even goes in the yard. Negotiation is a two-way street, and if you refuse to budge on pricing or other conditions, you might be in for very bumpy (and long) ride. Ask yourself: Is it more important to get full asking price, or can you make a few concessions to find common ground that will ensure a closed sale?

 

6. Ignoring your agent’s insights – The best route to the right price starts withpicking a great agent and then listening to his or her advice. Your agent will look at your situation from all angles – your home's features, the local market, recent sales and more – to help you make an informed decision about pricing.  

 

Ready to list your home? I can help you price it right and get it sold.​​

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5 Real Estate Myths:Beware these common beliefs that often snag buyers and sellers


5 Real Estate Myths:Beware these common beliefs that often snag buyers and sellers

When you buy or sell a home, you're likely to get lots of unsolicited advice from friends and family. Some of that advice might be helpful while some of it might not be so helpful. When it comes to real estate, people tend to make generalizations based on their own experiences when the reality is more nuanced.

 

Here are some examples:

 

1. "You should wait to list your home until the spring." Yes, real estate is seasonal. In some cities this is more apparent than others, especially places with harsh winter weather. When real estate company Redfin crunched the numbers over the past five years, we found that 51 per cent of homes listed in the winter sold above asking price, compared with 50 per cent in the spring.

If you want the best shot at selling your home quickly and for the most money, list in the first half of the year. The percentage of homes that sold over asking price dropped to 44 per cent and 43 per cent in the summer and fall respectively in our region. Ultimately, the difference between selling in the winter and spring is negligible. Pricing and marketing strategy is the most likely to sell.

 

2. "Look for a deal during the holidays." I've seen many buyers who were convinced they could score a great deal on a home by looking around the holidays. There is a nugget of truth to this concept. Fewer buyers are looking during this time period. Sellers who list during the holidays might be selling due to necessity, like a job relocation, and therefore be more motivated to sell quickly. Sale price is ultimately a function of market dynamics and less a function of the season. The key is to be patient. I also suggest buyers look at homes that have been on the market for a bit of time. These might be good opportunities for negotiating a sale under asking price.

 

3. "You don't need an inspection for a new build or recent renovation." Some buyers are under the impression that they can forgo the inspection for a property that is new or recently renovated. From an improperly installed dryer vent to faulty wiring, new developments can have minor and major problems that aren't apparent until you get a professional to do a review. While there might be competitive reasons to waive the inspection contingency in the contract, the decision to do so should not be taken lightly and should be made with full knowledge of the risks.

 

4. "Your home is updated and in a good neighbourhood so you don't need to stage it to sell." Even the most beautiful, highend homes should be staged and photographed by a professional photographer. Listing photos are a critical factor in the selling price of your home, how quickly it sells, and whether it sells at all. Our agents found that homes with professional listings photos sold faster and for more money, as much as several thousand dollars more. A professional stager can provide objective advice on how to get your home photo-ready. They see a lot of homes so they can speak to design trends and features that are common in homes for sale in your area.

 

5. "Price your home above the amount you want to get, so you have room to negotiate." Determining what your list price should be is an art and a science. Before you list your home, ask your real estate agent for a comparative market analysis, which will help you determine a reasonable price based on sales of similar homes in your area. A Redfin study showed that the first week a listing goes on the market it receives nearly four times more visits online than it does a month later. Even if you drop the price later, it won't get the same attention. When in doubt, start with a lower asking price.

 

By Marshall Park, The Washington Post

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