The saying goes: “You never get a second chance to make agood impression.” And that is true for the first 30 days your property islisted for sale. Not only does your property need to be in the best shapepossible at initial offering, it needs to be priced well. Pricing well means pricing it ahead of themarket; not behind it.
Otherwise, youcan spend a lot of time chasing the market with price adjustments and nevercatch up. You’ll just create a stale property reeking of desperation.
Here are a few seller pricing myths:
Otherwise, youcan spend a lot of time chasing the market with price adjustments and nevercatch up. You’ll just create a stale property reeking of desperation.
Here are a few seller pricing myths:
"I need more money because… "
Remember that buyers have no emotional or a vested interest inyour need to walk away with money to buy your next home, pay off debt orbecause you put granite counter tops in the kitchen. Buyers want the best-perceived value for their money. If your home is priced higher than other comparable properties, you'll be seen as overpriced. Buyers will pass your home up and keep shopping.
"Well, they can always make me an offer… "
No, they won't. When you are in the wrong price bracket, buyers looking atyour home will expect it to be better than it is based on the higher price bracket. Buyers will just see your home as another overpriced property. They won’t bother to make an offer because your property is notwhat they want. They want the home that actually belongs in that price bracket.
For example, a $400,000 buyer expects to see a $400,000property; but yours actually compares better to a $375,000 property. That $400,000 buyerwill immediately eliminate your property because they don’t want a $375,000home—they want a $400,000 home.
On the other hand, the $375,000 buyer who would be a perfect fit foryour property will never see it because you don’t show up on their radar—theyaren’t looking at $400,000 homes.
On the other hand, the $375,000 buyer who would be a perfect fit foryour property will never see it because you don’t show up on their radar—theyaren’t looking at $400,000 homes.
Another reason that you don’t want to price your home in the wrong price bracket: itcould be used to justify why the buyer should purchase your neighbor’s home asa better value.
"I need room to negotiate… "
Don’t use the excuse that you need wiggle room for negotiations. My experience is that the buyers will make a more realistic offer when a home is realistically priced. Buyers usually realize its value and will offer accordingly. Remember that the buyer is looking at every home in that price bracket and will have a pretty good grasp of the market value.
"My home is so much better than… "
A good reality check is to visit other active properties in person with your real estate agent to see homes that buyers will see. When I do this with my sellers, it usually helps my sellers understand how their home stacks up against the competition in both price and condition. Sometimes, it is a real eye opener.
Review the market data of homes selling in your area invarious price ranges with your real estate agent. Look at data on homes that did not sell as well as those thatdid. Be sure to include homes that arein similar neighborhoods in other areas. Buyers will be doing the same.
If I can help, give me a call at 410-224-0645 or email me at KimberlyBarton@ChampionRealty.com
