When preparing to sell your home, getting the most money for your investment is top of mind, and a top factor in selling your home is price. If you want to find the right buyer, it's crucial to have a sound pricing strategy. Here are six of the most common pricing mistakes homesellers should avoid:
1. Overpricing at the get-go – Even if you think your home's value is the cream of the neighbourhood crop, it's important that you appeal to the value buyers see. Initial overpricing could exclude serious potential buyers, particularly if the current market, recent sales in your neighbourhood and other factors don’t match your high price. This situation also risks numerous reductions in the price, which translates to your home sitting on the market for an undesireable length of time.
2. Excluding your listing from online searches – Price range is a very common parameter for homebuyers when perusing their options. If a buyer’s price range begins at $300,000 and ends at $350,000, you'll exclude your home by listing it at $355,000. If this were the case, listing at $350,000 would make your listing more likely to capture attention of buyers. The choice is up to you and your real estate agent, but if you're on the fence between price ranges, this is definitely worth considering.
3. Ignoring recently sold properties – If you want to generate buyer interest in your property, your price can't be based only on the listing price of other homes in your neighbourhood. Take a look at properties that recently sold, and the prices they sold for. You can get the bigger picture from an experienced real estate agent providing you with details about recent sales.
4. Getting overly creative with your asking price – It's easy for buyers to choose round numbers. For example - listing a home at $456,251 can give a potential buyers cause for a double-take, diverting attention from your home to yourself. It's probably better to save the creative juices for other details, like the property description.
5. Being closed to negotiation – If you want to kill a sale immediately, all you've got to do is dig your heels in on the asking price. Negotiation goes two ways, and being unflexible on the price (or other conditions) could mean a very long and rough road. Is it more important to stay firm on your asking price when you could take a few steps toward common ground and ensure a closed sale?
6. Ignoring your REALTOR'S® insights – The safest route to the best price begins with picking a great agent, and listening to their advice. Your agent knows how to view your situation from all angles – like recent sales, the property's features, the local market and more – and can help you make an informed decision about your price.
If you're ready to list your home, call a local RE/MAX real estate agent. They'll help you price it right and get it sold.