Pricing Mistakes You Need To Avoid When Selling Your Home
Friday Sep 01st, 2017
Real Estate Pricing Mistakes You Need To Avoid
Selling your home can be difficult, but it does not have to be. Avoiding common mistakes can make it relatively easy. If your home is priced above market value, it does not matter if you hire the best local real estate agent with the spectacular marketing plan, it will not sell! Getting the price right is the major marketing piece to selling your home. Listing your home at the correct price will almost guarantee a quick offer especially in high demand neighbourhoods. Unfortunately, pricing a home at the correct price is not a simple process. If it was as easy as listing a home based upon its assessed value, there would be no need for real estate agents. Here are the top 3 key mistakes to avoid as sellers.
#1 Mistake: Higher Price Enables Room To Negotiate: Increasing the listing price above what is recommended and supported by market analysis to enable a margin for negotiating is a huge mistake. Home buyers today are savvy and knowledgeable as information is abundant and easily accessible on the internet. When a home is overpriced, potential buyers will not look at it which eliminates any chances for an offer and negotiating your sale. Buyers Realtors that do their “home work” provide valuable information and data to help make an educated decision on what to offer. Listing your home at market value and not adding in a contingency to negotiate, will in most cases, get a seller more money in shorter time.
#2 Mistake: Pricing Your Home Without Obtaining A Comparative Market Analysis: A comparative market analysis, commonly referred to as a CMA, is one of the key elements a real estate professional will spend hours compiling and researching. The data produced enables important analysis to ascertain the fair market value of your home. A seller who does not have a CMA performed on their home is making a huge mistake as is the Realtor. When a CMA is done correctly, a home will typically sell close to list price in a relatively short period of time. You also want to ensure that your home is not under appraised!
#3 Mistake: Listing Your Home With The Agent Who Recommended The Highest List Price: The volume of homes that I have seen over-priced is alarming and little wonder why they are reduced, expire or terminated. Like any industry, there are professionals who are great at what they do, okay at what they do and professionals that are terrible. Any Realtor who would recommend a higher listing price to obtain the listing (referred to as "buying the listing") is really doing a disservice to the seller and agent. If the Realtor’s proposed market value cannot be supported with facts, it is likely going to result in a mistake costing you time and perhaps money.
Being aware of some of the mistakes and their impact on selling your home can easily be avoided. Price it right and it will sell!