Pricing your home correctly from the beginning can set the tone for your entire home selling experience – it’s that important! When homes are priced incorrectly, they tend to sell for less money after sitting for so long on the market.
Today we’re here to point out 6 home pricing mistakes you’ll want to watch out for.
1. Overpricing From The Start
The truth is, first impressions matter, and by pricing your home too high you’re essentially painting yourself into a corner. Many potential buyers will simply overlook your home if you’ve priced it out of their range. When you do get around to reducing the price at fair market value, they may have already found something else.
At the same time, buyers who may be interested in your new, lower price will find themselves suspicious that your home has been sitting on the market for so long! You’ll definitely want to avoid finding yourself in this position if at all possible.
The idea of getting less money for your home might be tough to get used to, but you can also think of all the costs you’ll incur when your home continues to sit on the market at an asking price that’s too high. It’s one of the home pricing mistakes you’ll most want to avoid.
2. Basing Your Home On A Neighbor’s Asking Price
It’s tempting to peek around your neighborhood to see how others are pricing their homes, and it’s also one of the more common home pricing mistakes. But remember: just because your neighbor is asking for a certain price doesn’t mean his home will actually sell for that amount. Maybe your neighbor is pricing too high (see #1, above) or maybe he’s less motivated and wouldn’t mind if his property sat on the market for a long time.
Instead, your listing agent should research the final prices of recently-closed sales in your area and prepare a comparative market analysis. You’ll get a much more accurate idea of the home value trends in your area.
3. Getting Emotionally Involved
Your home is likely a very special part of your life. You’ve probably spent plenty of time, money and energy investing in your home – not to mention all the once-in-a-lifetime memories you’ve made while living there.It can be hard to realize that potential buyers simply don’t share your sentimental feelings for your home.
Bottom line: what you feel your home is worth shouldn’t even be a factor when you’re determining the listing price. It can be tough to think of one of life’s biggest transitions as a business transaction – but that’s what it is. To avoid one of the home pricing mistakes that can be easy to overlook, make sure to listen to your listing agent and stay objective as best you can.
4. Leaving Out Potential Buyers In Online Searches
These days, the very first thing a buyer does is hop online to search for their new home. The very first information they’ll likely enter to narrow their search options? A price range. Your asking price should take this into account.
For instance, if a buyer’s price range is $250,000 to $300,000 but you’ve listed your home at $305,000, they likely won’t see your listing at all. It might make sense to list it right at $300,000 so that you capture all the potential buyers searching in the ranges above and below.
At the end of the day, it’s all up to you and your listing agent. Particularly if you’re on the fence about your pricing though, the range your home’s price falls into in an online search is worth considering.
5. Not Being Open To Negotiation
It can be challenging at times, but it takes two parties to negotiate. If you refuse to give and take when it comes to pricing or other conditions, you might fall into the trap of one of the most common home pricing mistakes and find your home on the market for much longer than you’d like. As nice as it would be to get full asking price, you could probably stand to make a few concessions to make it happen much sooner.
6. Failing to Quickly Reduce Your Asking Price
If several weeks go by without an offer, your home is likely priced too high. This becomes even more likely if similar homes in your area spend a much smaller number of days spent on market. Instead of making a small price cut and then possibly having to do it all again next month, the best strategy is to make a large, bold price cut right now. A price cut of $10,000 or more will attract buyer attention and let everyone know you’re serious about selling your home.
Home Pricing Mistakes Happen to Even the Most Prepared Sellers
Selling a home is one of life’s bigger events, and it’s all too human to make mistakes or fail to see your circumstances as clearly as you’d like. But if you’re on alert for these common home pricing mistakes, your home is more likely to be off the market in no time.
DISCLAIMER: Citywide Home Loans does not offer real estate services.