Properly pricing your property is key to a successful sale in the least amount of time and for the highest value. It is important to get it right from the start.
The Top Five Mistakes Home Sellers Make When Pricing Their Home
1. Sellers often price their home based on “need” rather than the market.
2. Sellers use the “wrong” properties for comparison when pricing.
3. Sellers build a “negotiating cushion” and then have no one to negotiate with.
4. Sellers take advice from “well meaning” but uninformed parties.
5. Sellers allow positive emotions about their property to influence their pricing decisions.
Consequences of Improperly Pricing Your Home
· Buyers in today’s marketplace are very educated on value. If they feel your home is priced over the market they will pass over your home.
· If you price your home too high you end up chasing the market. Often times the home ends up selling for less than it could have if it would have been priced properly in the early stages.
· The home will likely take longer to sell. This can create carrying costs and the possibility of an increase of purchase price and mortgage payment for the next home.
· Pricing your home below the market will likely create more interest and result in a faster sale. The downside is that you may miss top dollar.
It’s important to understand the current market conditions when creating a pricing strategy. Is it a Buyer’s Market? It is a Seller’s Market? Is it a Balanced Market? Having a professional Realtor that understands the market and can educate you is key to pricing your home properly and obtaining your goals.
This article is a great reference to use when choosing a Realtor to hire: https://lizorealestate.com/choosing-the-right-realtor/