Overpricing Your Home Can Cost You Big Time
There is no strict science to planning the sale price of your home, rather it is more about finesse and understanding the market and how it can change over time, and sometimes even quickly.
By listing your home for the right price the first time you will be able to get more money from the sale. Homes that linger on the market for too long almost always end up selling for less money. According to research the amount of money that you can get for the home will drop by as much as five percent after just two months of stagnating.
Here are some considerations to keep in mind when trying to determine what you should be asking for your home:
Listen to your agent (but do a little research on your own as well)
Most homeowners over-value their homes. They think of all the things they have loved about the home over the years and sometimes the bad aspects get overlooked after time. It can be difficult to be objective and that is okay, that is where the right agent comes in.
They know the market and the area better than you do, so take their work for it when they tell you the proper asking price. That said, they should be able to back up their claims with comps. Always ask for comps.
First impressions matter
You are likely going to get the most action on the home in the first couple of weeks. That is why it is important to do whatever needs to be done to the home to get it in shape before you list it. You want to be able to compete with the other homes on the market right off the bat, so consider anything like home repairs or staging in advance of your home going on the market.
Be open to price reductions
Sometimes homes just don’t sell the way the agent or the seller hoped or thought they would. It happens. If your home has been sitting on the market for weeks it is time to seriously consider a price reduction. The longer the home sits there getting no action the lower the price is going to be in the end so be willing to cut your losses.
If you list your home at the wrong price twice you are going to have a big problem because no one is going to take you seriously. Don’t forget, most buyers have agents as well and you can be sure they will have less positive things to say about your listing if it has been sitting there doing nothing for months.
Markets change
Another concern with leaving your home on the market too long is risk of the market changing. Markets can begin to decline at any moment for several different reasons. This is a risk you can avoid to some degree by simply pricing your home to sell the first time.
If you really want to sell your home it is imperative that you price the home correctly so remember these tips and watch your home sell.