The bulk of mail I receive from readers asks for tips on selling a home. Many have had their home on the market for months without a showing. Some home sellers have had dozens of buyer previews but no offers.
The reasons for a home not selling could be many, but most of the time it is due to…you guessed it: PRICE.
Sellers make some classic mistakes when pricing their homes. If you avoid these 4 pitfalls, you should have your home sell more quickly:
1. Pricing based on your ego
Market Value = a house is worth only what a buyer is willing to pay.
Almost everyone thinks their house is better than their neighbour’s – or at least better than the recently sold properties in the area. So when you find out that your neighbour sold his place for $350K last year, you decide to list your home for $375K because you just “know” that your house is better…all the while ignoring that the market is weaker than it was last year. Unfortunately for you, the only opinion that matters is the buyers’ – they decide if your home is worth the price you set and they may not think your home is that awesome!
2. Pricing based on greed
Your agent presents you with a CMA that shows your house will likely sell for around $425K but you insist on listing it for $450K because “you just never know”. You think that someone could come along and fall in love with it right away and pay whatever you ask just to have it. Besides, if you don’t get any interest, you think you can just lower the price later. Here’s a look at all the problems associated with pricing your home too high. Setting that unrealistic price sends a message to the buyers – that YOU are unrealistic and they won’t want to deal with you. Pretty soon your house will be that listing that’s been sitting on the market for so long that buyers decide there is something wrong with the house and avoid it all together.
3. Pricing based on what you need
What you need to make from the sale of your home means absolutely nothing to buyers. Therefore, setting a price based on what you want so you can buy the bigger house, pay off your debts, retire, etc. is a terrible strategy.
4. Choosing the wrong agent
Don’t choose an agent simply because they claim to be able to get the highest price for your home. You want to work with an agent who is competent, experienced and honest. And someone who is local – which means they specialize in the neighbourhood you live in. Don’t base your decision solely on the agent’s suggested sale price or how much the agent charges in commission. Consider as well the agent’s strategic marketing plan. How will they market your property? What services do they provide?
Sellers will sometimes say that they “Don’t want to give the house away!” Of course you don’t want to give it away – you want to sell it. But in order to sell your home, the price must be right. Don’t fall into the trap of testing the market by asking an inflated price. Doing this will surely cause your house to sit and the “Days on Market” will continue to increase. Buyers will consider this when deciding to view – or make an offer on – your property…and dated listings seldom sell for list price.
If you are looking to buy a home, or are thinking of selling yours, I would be glad to represent you and help you negotiate the best deal. Please contact me at steve@stevewalsh.ca.
Image courtesy of tungphoto / FreeDigitalPhotos.net
