The Price Matters
If priced competitively from the start, a property will end up selling towards the higher end of the value spectrum. The longer a property stays on the market, the more likely it will end up selling for less and you stand the chance of even getting low-balled below the range you have set for that property.
Homeowners have very limited information on current real estate markets. For example, a potential home seller would not know that a home 2 blocks down sold 6 months ago for $20,000 less than they want to price their home.
Here is where a seasoned agent is worth the money. Successful agents study and view the market every day. After all, it is their job to know this type of information. They keep their ears to the street and hold a large understanding of current market conditions because they work with buyers, sellers & investors. They have first-hand knowledge of how to sell a home and what will move them.
The Cost of Overvaluing Your Home
Many sellers overvalue their homes for a number of reasons. One reason is that they hold sentimental value over the property. If you have been living in a home for 15 plus years and raised a family there, one could see why it might be hard to part ways with a home. Don’t assume that when an agent prices a home below your expectations that they are doing so just to make a quick sale. Agents know that homes that are priced right and show well will sell in good times and in bad times.
Why First Impressions Are Important
First impressions make all the difference. The market responds to a new listing in the first two weeks of it being listed. Sellers must do everything that they can to make it attractive to buyers right from the start. Price the home right and take all of your agents advice into deep consideration such as cleaning, staging if it calls for it, painting, prepping & de-cluttering.
List at the wrong price or if the home is not in its best showing condition and you will definitely leave the wrong first impression on the market. As time goes on, a listing starts to lose its momentum as newer, more competitive homes come up for sale. The longer a home is on the market, interest in the home decreases and the listing will run the risk of being extremely low-balled. With a listing that is on the market too long your agent will also lose negotiating power which is never a good thing.
Be Seriously Motivated
If you are serious about selling your home and have a strong motivation to do so, then take pricing very seriously. If you disagree about the price that your agent has come up with talk to them to see why they feel that their price point is the best one to go with. There is nothing wrong with starting high but if you generate little or no interest then you must reconsider the price and do a price reduction. Have an upfront plan to reduce the price quickly, and use that price reduction as a marketing activity. The market will always respond positively to a seller who proves that they are serious about selling their property.
Whether you’re interested in buying, selling, investing or relocating talk with a Realty Executives Dillon Real Estate Expert to see how we can assist you in your real estate transaction.