COMMON SELLER MISTAKE

#2 OVER OR UNDER PRICING

Another weekend has gone by and you still don’t have an offer. You are frustrated! Let me help you figure it out. There are many reasons a house isn’t selling, but usually it’s the price. The price will solve a ‘condition’ issue, if there is one. The worst seller mistakes involve the issue of pricing. Whatever you do, don't be misled by pricing Misconceptions. It's a BIG mistake to think these factors affect the market value of your home.

• What You Paid
• What You Need
• What You Want
• What It Costs to Rebuild Today
• What Your Neighbor Says
• What Another Agent Says
• What Your Tax Appraisal Says
• What Zillow or Other Internet Real Estate Websites Say

Unfortunately, as much as you would like these reasons to make a difference, none of these factors determine or influence the market value of your home. Only comparable homes in your neighborhood that have SOLD in the last six months determine market value. Recognizing this will help to avoid over or underpricing, a major factor that leaves homes languishing or unsold...and you, an unhappy seller!

Guessing Instead of Researching Price

Basing your home price on what the neighbor down the street has listed his home for is not a reliable method of pricing your home for sale. The Comparative Market Analysis (CMA) is still your best source for setting an asking price. If a home in your area sells for a low price, don’t assume yours is worth the same amount. Your home might have something to offer that the other one didn’t. Let the CMA be your guide, and get the advice of an experienced real estate professional. 

Setting The Price High, Thinking You Can Reduce It Later

A big trap that many sellers make is setting a higher price expecting to either get lucky or to be negotiated down. This works with selling a car or a lawnmower, but not selling a home. The buyer will likely come in with a buyer’s agent and they will spot the over price and steer away from the house. What happens after that is usually a sad story for the seller because an overpriced house, as you have seen already, can be a problem for the seller and affect what you will end up getting out of the sale.  

Since most buyer showings come within the first two weeks of it being on the market and listed in the MLS, it is vital your property has a realistic price from the very beginning. Buyer interest peaks when your home is new on the market. Price it right while buyer activity and interest are high! In a nutshell, here are the dangers of an unreasonable asking price, and the common results of overpricing can be: 

• Lack of Showing
• Tough Negotiations
• Appraisal Problems
• Buyer’s Remorse
• Stagnation and Stigmatization
• Helping Competing Listings

Testing The Market With A High Price

Even if you are not in a hurry to sell, it is not a wise move to “test” the market by listing your home at a high price to see how it goes. Serious home shoppers may take months to find a new home, so they are continually looking for new listings, not ones that have been sitting on the market. ‘Days On Market’ will determine the price of buyer’s offers.

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In Geni's book, 'INDUSTRY SECRETS -That Get Your Home Top Dollar!' there is a whole chapter titled 'Common Seller Mistakes To Avoid.' For a copy, click on the book.