Pricing a home correctly is sometimes a battle of the wills. The best advice a realtor can give a seller is how to correctly price a home. No matter how beautifully upgraded or well-maintained that castle may be, the correct price will sell a home every time. One of the most difficult tasks a realtor has in their day is aligning what a seller thinks their home is worth with its true market value. Here are a few more price setting myths that sellers fall for and are hindrances with the sale of a home.
1. “Price the home high. We can always come down in price.” This myth assumes that all buyers will submit a low-priced offer, and that interested buyers will always make an offer that can be negotiated. The fact is, a seller risks losing buyers who won’t even submit an offer or who can’t qualify at that higher asking price. Buyers are much savvier today, with the internet backing them, when it comes to home values. Sellers never get a second chance to make a great price-wise first impression.
2. If a home is priced at market value, a seller risks leaving money on the table. Further from the truth! A well-priced home will receive interest upfront and will often receive multiple offers. A shorter marketing time will also be the result. A home sitting on the market for a shorter period of time means sellers will pay less mortgage, taxes, and upkeep. Also, homes priced just right create an urgency since buyers know they’ll be competing with other buyers. A quick sale actually means more money in the seller’s pocket.
3. We can wait until spring for it to sell. As the saying goes, “A sitting home does not age well.” Homes sitting on the market do not get better with time like fine wine, they become stale. Buyers begin to wonder what’s wrong with the home. Offers that are submitted are usually perceived to be too low with an already frustrated seller. Remember, buyers are out 12 months out of the year seeking homes and purchasing. Motivated sellers will always attract motivated buyers no matter the time of year.
4. This buyer’s offer is simply too far off the asking price to counter. If you don’t like what you’ve received, counter and counter again! Some buyers start low to figure out what the seller’s bottom line is. Counter at your bottom line and then don’t budge. If that buyer walks and the home is correctly priced, another buyer will appear. Don’t be offended. Use your head and not your emotions. Counter it!
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