When you put your home on the market you are no longer the home owner, you are the home seller. Sellers must adopt the mindset of the buyer and see the home through a buyer’s eyes. Overpriced properties run the risk of incurring excess carrying costs and extended time on the market.
These are some of the pricing myths sellers shouldn't fall for when pricing their home.
It's Better To Price My Home On The Higher Side
Often times sellers think if a buyer is interested they will submit a “low-ball” offer but many buyers won’t risk offending a seller or wasting their time with an unreasonable seller. Sellers believe that lowering the price at a later date is an option but they risk losing buyers who aren't searching in that higher price range originally. Price is typically the first thing a potential buyer will use as a search criteria, if it’s too high, they may overlook the property completely.
The Market Will Catch Up To My Price
Unfortunately, home prices are not like a fine wine, the longer a home sits on the market, the more potential buyers will question the home's value and assume there is something wrong with the property. Additionally, although some seasons or times of the year are better in some markets than others, typically re-listing a home a year later at a similar price won't change the outcome. Additionally, when listing a year later, the home maybe be competing with more updated or more appropriately priced homes.
I'm Leaving Money On The Table If I Price At Market Value
Many sellers think that if they price at market value they might leave money on the table. Actually, the opposite is true! A well-priced home can result in more interest and multiple offers. Potential buyers are more likely to see the value in a well-priced home and will be less likely to nit-pick small details when they feel the urgency competing against other buyers.
I Don't Need To Factor My Home's Outdated Features Into The Price
Most potential buyers are looking at all the things they are going to have to change or upgrade once they get into a home and adding that to the list price. Outdated appliances, hardware, and countertops are all items potential buyers will have to factor into the price. However, keep in mind it may be more expensive to update or replace some of the outdated features in your home prior to selling, instead focus on a fair list price.
Offers Should Be Close To The List Price
In a competitive market, would you put your BEST offer as your first offer? Probably not. So don't be surprised when offers for your home come in lower than expected. Buyers want the best price they can get, and most are willing to negotiate.
I Won't Accept An Offer Below $X
Unfortunately, many sellers decide to draw a line in the sand and won't entertain offers below a certain point. It's important to take into consideration every offer. Countering an offer can result in a sale and note that subsequent offers may be layered with conditions and complications.
This Offer Is Too Far Off To Counter
A potential buyer has taken the time to put pen to paper and write up an offer. An offer is an invitation to negotiate and begin a discussion about your property. It's easy to see a low offer as offensive, but try to stay positive and work in good faith. You'll quickly be able to see if a deal may come together.
At the end of the day, your Realtor® is your best asset when pricing your home. No matter how exceptional the property, if a home is not properly priced it's going to be a tough sell.