Making these mistakes may delay your home’s sale
Getting the price right to sell your home is a battle half-won. Buying a home is one of the biggest investments most Americans will make in their lifetime.
It makes sense, then, that selling a property is no less than a milestone either.
Considering the number of steps involved in property sales: finding an agent, pricing, listing, repairs, negotiations, and finally closing the sale. The process can be overwhelming. Hence, today, we’re going to focus on one of the most important aspects of selling a home: pricing!
If you do this right, you’ll achieve peace of mind. However, if you make the mistakes highlighted below, your property may sit on the market for longer than anticipated.
Let’s begin with one of the most common-yet-critical mistakes that sellers tend to make:
- Overpricing your home
According to a 2020 report by the National Association of Realtors (NAR), 38% of sellers reduced their listing price – at least once. The reason is simple, they had overestimated the price earlier. That caused a delay in closing the sale.
Gladys Blum, a highly sought-after real estate agent in Salem, Oregon, said in an interview with HomeLight: “Even a few thousand dollars over your target price could steer buyers away from your listing.”
There’s no fooling today’s buyer. They can just as easily uncover how long your house has been sitting on the market and why. Besides, the true value cannot be hidden from the imminent home appraisal.
By making this mistake, you’re essentially driving your potential buyers toward comparable houses in your area.
- Ignoring the comps
The reason why sellers should always consult a listing agent when selling their home is that they are emotionally involved with the sale and can commit a few mistakes in property pricing – ignoring the comparable homes nearby is one of them.
Every person has unique tastes and preferences. Combined with their memories attached to the place, they can come to believe that their home is somehow worth more than other properties in the neighborhood (in other words, they’re biased).
Comparable sales or “comps” are recently sold properties similar to yours with regard to features, location, and size. A listing agent will offer a realistic price for your property, even in extreme markets.
- Introducing a bidding war
In the hopes of ramping up the eventual sales price, sellers often keep the asking price attractively low. This starts a bidding war: a war where the chances of your defeat are surprisingly pretty high.
With this tactic, there’s an inherent risk that you won’t wind up closing with the highest-priced offer – for example, if your home appraisal doesn’t justify the price. Not just that, you lose out on any lower offers as well. Others may wonder if your house has a flaw that caused the deal to fall through.
- Not heeding your realtor’s advice
Hiring a realtor only works if the seller actually listens to their advice. Not following the pricing suggestions offered by an experienced and skilled real estate agent could have costly repercussions.
Like everything in Goldilocks and the Three Little Bears, the price of your home must be “just right.” It must reflect the current state of the local real estate market as well as enable you to ask the maximum amount that the market will bear. Avoid the above mistakes at all costs, and you won’t go wrong when pricing your next property!