When it comes to selling a house, very seller wants to get top dollar. Who can blame them? But not every seller goes about it in a way that achieves that goal. Time and time again I talk with sellers who want to list their homes above what neighboring homes have sold for, saying “Let’s just see what happens”. Because they love their home, they are convinced that everyone else out there will love it too.
#1 Pricing Mistake When Selling a House
When selling a house, overpricing is a really bad strategy. Today’s buyers are sophisticated and do their homework online before purchasing their new home. They recognize a good deal when they see it. They also recognize when a home is way over priced. So does the buyer’s Realtor. So even if the buyers love the home, they’ll hold back just waiting for the seller to start dropping the price. And they almost always do. In the meantime, the “days on market” is ticking up and the listing is getting “stale”.
It no longer has the cache of a hot new listing that just hit the market. With each price drop, the seller appears more and more desperate and the house seems less and less appealing. The end result typically is that the house sells for less than it would have if it had been initially listed at a lower price.
Best Pricing Strategy for Selling a House
To get the best price when selling a house, it needs to be priced correctly from the start. A much better strategy is to have your Realtor prepare a Comparative Market Analysis (CMA) for you. Similar to an appraisal, it will analyze three recently sold homes that share the most in common with yours in terms of size, upgrades, location, age, etc. It will make adjustments for differences, then indicate a value range for your home based on what other buyers paid for the comparable homes. The CMA will also review other competitive homes on the market, giving an overall assessment of the market conditions a seller should consider when pricing his home.
While selling a house is often an emotional process, you will have much better results if you can approach it in a business-like fashion. For most people, their home is one of their biggest investments. A ‘wait and see what happens’ over-pricing strategy just isn’t an effective way to get the most return on the investment of your home.
Start the process by having a Comparative Market Analysis done for your home. Then set a plan of action that will give you the results you desire.