The second greatest mistake home sellers make is starting the sale of their home at a price too high. Everyone want to “test the market” and see if they can get a little more money, but doing so can hurt your sale now and down the road.
Home buyers have so much information these days that they won’t being fooled by a high price. They’ll just avoid it. It only takes a few hours to search the MLS and get a feel for prices, and with only a little studying consumers know what’s priced too high.
In a buyers market with a high inventory, no one is buying the home’s priced at the “testing the market” point. If you want to get the most money on the sale of your home set the right price from the start. Studies show a new listing will have greatest effect on the most buyers in the first 10 days of listing. Miss this crucial time period and your home can sit on the market longer than you want. You don’t get the same impact when you reduce the price in a month. The buyers you should have encouraged 30 days ago have moved on or they are looking at new listings, price reductions cause less excitement.
When choosing the correct price to list, don’t just consider comparable homes that have sold. Also take a very close look at “home for sale inventory,” and more specifically how many similar homes are on the market. Pick the few closest in comparison to yours and position your price a bit better. Price a bit below your competitors. With buyers being so aware of pricing in todays market they won’t be buying the comparable home priced highest. Why would they? Keep in mind, your home isn’t as appealing to buyers as it is to you.
There are technique to use to make sure you get the best price when selling. For example, if you can’t see around “testing the market” be sure to react very quickly if buyer interest doesn’t happen…