The first thing that any prospective buyer notices about a new home for sale is the price. You can spend time and money to get your house in the best condition possible but if the price is too high nobody will ever know. Long gone are the days when you can list your property at any number and wait for offers to roll in. By listing too high you immediately lose a large segment of prospective buyers that may never have interest again. Conversely by listing at a fair market price you can quickly generate a buzz than often produces a sales price you are happy with. If you are considering putting your home on the market don’t make these three popular listing mistakes.
- Pricing higher because of the work you put in. Every buyer wants to live in a nice house. There is no question that a higher quality home is more desirable to buyers. The mistake that is often made is thinking that buyers will place a premium on this. It is easy to look at any work you may have done with the property and add increased value to it. The reality is that buyers don’t look at where you may have started only where the property is now. They will stack your property up with other comparable homes on the market. You may have made some great improvements but it doesn’t warrant being 10% higher than other homes in the area. Trying to take a shot and see if an offer comes in doesn’t work in most markets. Buyers will pay slightly more for quality but not more than what your market dictates.
- Testing the market. One common thought is that you never know how much you can get if you don’t try. This works great in theory but not so much in the real world. When a new listing comes to the market buyers and real estate agents get a first impression. If the listing is well overpriced it will quickly be dismissed. Instead of having showings where you may actually get buyers in a bidding war you will have minimal activity. After a few weeks and just a handful of showings you may decide to lower the price. Any buyers that may have been interested initially have moved on to other houses. Testing the market usually only leads to price reductions and lost buyers.
- Not looking at the data. There is plenty of information to look at when listing your property. As much as you may try to fight it the data is almost always right. This means accepting that homes in your market are only selling in a certain price range. Your house may have certain amenities that others don’t but probably not enough to dramatically increase the price. As difficult as it may be at times you should think like a buyer. Look at the information they are going to when considering where to list. The quicker you can get your home on the market at the right price the quicker you can get is sold.
Everything starts with where you list your property. Look at all the information available and listen to your real estate professional’s advice. The right list price is critical when selling your home.