Every real estate agent worth their salt wants to sell your home for as much as possible. There are many factors that can affect how much your house is sold for – including its location, the marketing carried out and how it’s prepared for sale – but one major factor that’s less often talked about is how your home is priced.
Setting the right price for your home requires striking a balance that will see you get the best deal for it without it staying on the market for too long.
If you set your sale price too low, this may mean it gets bought quickly but you can miss out on thousands of dollars. Set it too high, and your home is likely to sit on the market for a long time, which can do more harm than you may think.
What we want to find is the ‘Goldilocks’ price that ensures a timely sale for a price you’re happy with.
The problem with overpricing your home
One of the most common mistakes in real estate listings is pricing a home too high. Many sellers and new agents are under the false impression that by adding a little buffer on top of the true value of a property, they have more power when it comes to negotiations. And, if they get lucky, someone might pay the inflated price. This is a huge gamble that rarely, if ever, pays off.
In fact, overpricing your home may end up costing you more than you think. No buyer wants to pay over the odds, so most overpriced homes simply sit on the market without offers while more reasonably priced houses get snapped up instead.
The longer a property stays on the market, the more a negative impression is created. People wonder why it’s been listed for so long, and why no one is making offers on it, which makes it even less desirable. In turn, sellers tend to drop the price – often to where they should have started – but by then it’s too late. The house already has a stigma attached to it and the negotiating power has swung round to the buyer’s side.
In some instances, these properties stay on the market so long that their prices drop down to what originally would have been considered as too low. There’s also the added stress and frustration of not being able to complete your own move, which can take an even greater toll.
Selecting your agent wisely
Before you list your property, it’s important to get a comparative market analysis from an experienced real estate agent. While some agents throw in mention of a huge listing price to try to sway a seller, that’s completely irresponsible. It can lead to a false sense of confidence and, as mentioned above, can lead to a worse performance than you would get otherwise.
If someone mentions a price that’s higher than others have suggested or that takes you by surprise, ask them how they’re going to achieve that sales result. Do they have a strong track record? Have there been local indicators of that price? Are they willing to advertise and market your home for free?
Alternatively, I offer an old-fashioned service and I tell it like it is. I won’t overestimate a sale price to secure a client, but I will work hard to get you the best price for your home, just as I have for countless other homeowners.
Call me on 0418 886 410 or email firstname.lastname@example.org, for an honest, impartial and expert appraisal of your home and its market value.