Pricing Mistakes To Avoid When Listing Your Home For Sale
Pricing Mistakes To Avoid When Listing Your Home For Sale
Pricing your home can be a tricky science sometimes. There is a lot to consider such as the updates you've done, the neighborhood you live in, the size of your home and the location. What the value of your house looks like on paper might not always match the market value of your home. Ultimately the market is going to determine how much your home is worth. If you're thinking of selling your home in the near future, you should be aware of the common pricing mistakes you'll want to avoid if you want to sell your home successfully.
Pricing it too high from the start: Don't make the common mistake of starting the listing process with the mentality of "we can always lower the price later." Statistics show that homes priced correctly when they first hit the market sell closer to the asking price than homes that start out too high. It's also common for sellers to want to price their home slightly higher than what they want to get as a final sales price. The problem with this thinking is that the higher you start, the smaller the pool of interested buyers is going to be. Buyers willing to pay what you really want for your house might not even see it because it's just over their budget at the price you have it listed for, when in reality, they can absolutely afford the price you really want to get. Your home also might appear as "over-priced" when you first list it for sale. Would you rather have potential buyers think: "That home isn't worth that much, they're crazy!" and try to negotiate your price down or "Wow! I love this house, I have to get it before it's gone!"
Not basing your price on recently sold homes nearby: The best way to determine the value of your home is by looking at what the market is like in your surrounding area. Make sure you're looking at similar homes that have already sold and taking their sale price into consideration. Other factors you'll want to consider are how many days those homes were on the market, what their original list price was, as well as the location and condition they were in. You can adjust your price accordingly to prevent listing too high and missing out on potential buyers.
Using an odd list price: When it comes to determining the list price of your home, skip the creativity. There isn't a trick method of using odd numbers to catch people's attention. In fact, the best method is to always price your home in round numbers. If you're planning on listing your home around $300,000, you'll want to avoid listing it at $299,900 or $301,000. You will actually reach the most buyers when you list it at a round number because you will be reaching buyers at both ends. With the example price of $300,000, you will reach buyers looking up to that price as well as buyers whose search starts at that price. With buyers having home searches online that fit their specific criteria, you could easily end up decreasing your demand by listing at an odd price.
Refusing to negotiate: There should be some flexibility in your final sale price when you list your home for sale. If you are set on a specific number and won't budge when your listing isn't getting any action, it's not likely that your home is going to sell for the price you want. After all, the market ultimately determines the value of your home, not what you think your home should be worth. Talk with your Real Estate Agent about the current market and stay up to date on what is happening in your area. Consider setting up a pricing plan before listing your home for sale so that you have a strategy in place to adjust the price if needed. The longer your house sits on the market, the less desirable it's going to look to the buyers who are out there.
If you're thinking of putting your home up for sale and want to know the realistic market value, I'd be happy to put together a market analysis and chat with you in more detail. It's my goal to educate you and set you up for success so that you don't make any of these common pricing mistakes. When it comes time to decide on your initial list price, remember not to price it too high from the start, make sure you're looking at recently sold homes nearby, avoid using an odd list price, and understand that you will probably have to negotiate. By following these guidelines, you will position your home to attract the most buyers when you put the For Sale sign in the front yard!
Located in the 11 county metro, The Trust Team is a leader in the Minnesota real estate market. The Trust Team was founded in 1978, yet represents the best of traditional market knowledge, cutting edge technology and top -notch customer service - all provided by 10 of the most experienced agents in the industry.
We combine the very latest in proprietary internet marketing, and make use of the most current and relevant real estate and social media platforms. We are considered leaders and innovators - always willing to try what is new, and use what is proven. Joe Niece, has more than 3000 past real estate clients, and is an information and renowned internet Guru. His wife Angela Niece and partners, Nikki Moeller, Matt Wolfe, Mike Finstad, Joe Jones, Cory Kingbay, Mary Ellen McGlone, and Stieg Strand have created a most unusual real estate team. 2015 was our best year ever with 498 satisfied clients which gave us the honor of being the #2 team in all of Minnesota. We want your business, promise your complete satisfaction and we are committed to your success !
Jilly walks us through her amazing DIY project! She put together a bar
"My home had failed to sell with my previous agent and I take the blame for that. I did not ask the correct questions and thought my home would sell quickly. I was so frustrated by the time that I had been on the market five months that I fired my first agent a month early. I was not going to make the same mistake again. My wife and I contacted five agents that had good reputations. The first one seemed good and she told us that our home was worth about what we told him we thought it was worth.
When the second agent came over, she seemed good also. I was excited with the price that the first agent had told us so I told the second agent that we thought our home was worth about 20,000 dollars more and we were shocked when she showed us that she could get that.
We told the third agent that we thought our home was worth 25,000 dollars more and amazing, she told us that she could get us that much for our home.
It was now obvious that the agents were telling us whatever we wanted to hear so we decided that we would see how far it would go. Every agent that we interviewed asked us what our home was worth and every agent told us close to the price we told them. We decided to try the reverse and we told the next two agents that our home was worth 50,000 and 100,000 less then the first agent told us and they showed us those numbers were correct. We were so frustrated that it was comical.
The on the 12th agent, we interviewed Angela. We were professionals by now and thought that we had heard everything. Angela was different. She did not tell us that our home was the best or things like that. She talked to us, asked about the home. Took notes as we showed him the home and she talked about all the things that she was going to do to market our home. It took him an hour to talk about marketing and she was pretty excited about quite a bit of it. Then she pulled out his laptop and had us sit on each side of him and she started doing a market analysis with us. She showed us exactly what she was doing, what criteria she was searching, to find similar homes etc.
As she was working on it, my wife started to tell him what she thought our home was worth and she stopped her in mid sentence and told her that she did not want to hear any numbers from us until she had told us his number. She used a phrase that my mother use to use and said that she did not want to sell his soul to the devil and be tempted to tell us what we wanted to hear vs what the truth might be. She said she would rather talk about his value vs our value if they were not the same. As she continued working with us and asking us about pictures from each of the homes that we looked at on his computer, she narrowed down our value and then told us that our home was worth about 325,000 dollars. Not to be thrown out of our game, I told him that I thought she was 50,000 dollar low and she asked what our home had that make it worth 50,000 more than the seven comparable homes that the three of us had picked together just 15 minutes earlier. I told him that our home was in better shape and she pulled up the pictures of the similar homes and said that she did not see a big difference between most of them and our home.
My wife then told him the range that other realtors had told us and she asked if we had the information that the other Realtors had left. We did and we showed him. She started showing us different foundation sizes, lot sizes, great rooms and other things that she said determined value on the homes, that the other Realtors that told us our home was worth 50-100k more, and it was obvious that she was not going to take the bait so we came clean and told him what we had been thru and that she was the 12th Realtor that we had interviewed.
We listed with Angela and she sold our home in 17 days. Angela was fun to work with and the entire time we worked with him it was smooth and she was easy to get a hold of if we had questions. I would recommend anyone that is buying or selling to work with Angela as she is willing to tell you the truth, spend time explaining what sells homes and what a home is worth and worked very hard.