When homeowners are preparing to put their properties on the
market, one aspect is usually foremost in their minds: money. Setting the
asking price accurately can mean the difference between getting an offer
quickly and having a house languish for months, drawing little interest. With
that in mind, it's important that potential sellers block out a lot of the
noise that often surrounds the intricate art and science of pricing.
There are plenty of myths that may cause sellers to lose sleep at night as they attempt to separate fact from fiction. The following are statements that can stand in the way of a successful sale.
There are plenty of myths that may cause sellers to lose sleep at night as they attempt to separate fact from fiction. The following are statements that can stand in the way of a successful sale.
1. 'If we keep waiting, a better offer will come along!'
When sellers receive an offer from the first showing, they
may be skeptical or hesitant to accept it, wondering if other prospective
buyers would be inclined to pay more. Thoughts of potential bidding wars could
cause sellers to want to wait and see who else falls for their place. But,
remember the old adage, "A bird in the hand is worth two in the
bush?" There's no guarantee other would-be buyers are waiting around the
corner. If the offer is a fair one, entertain it and count your blessings.
2. 'Getting an offer right away, means the agent priced it too low!'
When sellers receive an offer early in the process, as
excited as they might be, many can't help but wonder, "Should we have
asked for more money? Did our agent price it too cheaply?" While it's
natural to be skeptical (and even a little greedy), receiving an offer on the
early end of the spectrum most likely means your home was priced accurately and
attractively. If you trust your agent, you know he or she didn't pick a number
out of the sky, but rather based it on extensive market research. So, be glad
your sale is moving in the right direction.
3. 'We should price it so there's room to negotiate!'
Let's be honest: Most sellers would love to get top dollar
for their homes. But overpricing it with the intention of being willing to
accept a lower offer may just leave you empty handed in the long run. Plus, if
you have to drop your ask multiple times, buyers may begin to wonder what's
wrong with the place — other than the price, that is.
4. 'That's not what my Zestimate says it's worth!'
Have you ever noticed how homeowners are eager to believe
Zestimates or other automated valuation models when that price exceeds their
expectations? Yet, when the opposite happens, they assume it's outdated or
erroneous information? The point we're making is, these numbers can be
inaccurate, so again, trust your agent over the Internet. Enough said.
5. 'We can add all renovation costs to the asking price!'
Sellers may adore the improvements and renovations they've
made and want to add in those costs to the asking price. But remember, not
every change is going to land a huge return on investment. If you're curious
about what you can expect on those fixes, check out Remodeling Magazine's
annual ‘Cost Versus Value' report to get an idea of which upgrades yield the
biggest bang for your buck. Also, as you're making changes, bear in mind that
the infinity pool you view as an asset may just seem like a huge liability to a
buyer.
6. 'My Realtor® overpriced my house to make a larger commission.'
Agents are paid a percentage of the selling price of the
home. However, even if they were to raise the ask by $25,000, in most cases
that would yield an additional $1,500 in commission, which would then be
divvied up between the broker the agent is working for and the buyer's agent,
leaving your agent with less than $750 more in his or her pocket. It's hard to
imagine an agent would blow a potential quick sale — and take on weeks or
months of additional showings and marketing expenses — for a few hundred
dollars.
7. 'Reducing the price is a sign of weakness!'
While no homeowner is eager to drop the listing price, if
time is passing and there's been little interest, it could be time to consider
lowering the ask. Remember, time is money. While you're waiting for someone to
meet your price, you're still paying the mortgage, taxes, utilities, and
insurance etc. Plus, sometimes, lowering the price can put your home in front
of a group of new buyers, which could generate a lot more interest and,
ultimately, get the price back up closer to where it was in the first place.
The Takeaway
Finding a skilled Real Estate agent that you trust is the best place to start when you are thinking about selling!Find out your home's value with a Detailed Home Value Report from Our Listing Experts Today!
