The second greatest mistake home owners make when selling their home at is to price too high. Everyone want to “test the market” and see if they can get a little more money, but doing so will negatively impact your sale now and down the road. And in a slower market overpricing your home will have an even greater negative impact.
Home buyers have so much information these days that they won’t be fooled on price. They’ll just avoid the properties priced too high. It only takes a few hours to search the MLS and get a feel for prices, and with only a little research, consumers know what’s priced right or priced too high.
It’s easy to understant why a home priced even a little too high won’t sell in a slow market.
Ask your Realtor how many home similar to yours are on the market for sale before listing yours, and then ask how many in that same group are selling each month. In Red Deer, as this article is being written, there are 77 single family detached homes for sale with 4+ bedrooms and 2+ bathrooms. 77 might not sound like a lot unless you consider how many homes in the same category sell each month. Here the answer is 14. Do you think there is much chance the 14 homes that sold were price high? No, there’s a much better chance they were price better than the 82% of homes that didn’t sell.
If you want to sell your home quicker here are the 3 important things to consider
Is my home priced correctly? If you’re getting only a couple viewing each month you’re priced at least 4% too high. Considering the numbers above, to sell in a reasonable time period your house has to be priced better than approx 82% of the similar homes listed.
Is your home clean and presentable? The majority of homes listed for sale are in great shape. If you’re going to convince buyers to buy your home it has to be in great showing condition. If its not in great condition don’t expect an offer.
Also make sure your Realtor is actively marketing your home. Don’t be impressed by the Realtor who lists the most homes, look for one who strategically puts your lisitng in front of more potential buyer’s eyes. Some Realtors spend more time pursuing new clients than they do promoting their/your listing(s). Ask to see what your Realtor is doing for marketing above and beyond the MLS.
In a buyers market with a high inventory, no one is buying the home’s priced in the “testing the market” range. If you want to get the most money on the sale of your home start at the right price. Studies show a home listing will have it’s greatest impact on the most buyers the first 10 days from the initial listing date. Miss this crucial time period and your home will sit longer than it should. Impact is less when you reduce the price down the road.
When choosing the correct list price, don’t just consider comparable homes that have sold. Take a very close look at the similar homes for sale, they’re your competion. Pick the few closest in comparison to yours and position your price a bit better. Remember though, don’t just compare your house with other homes with similar features, you also have to consider your homes condition. Price a bit below your direct competitors. With buyers being hyper aware of pricing in todays market they’ll avoid what’s overprice. Why wouldn’t they?
Selling your home is a big deal, use every angle to get the best price.