Every seller wants to sell their home for the best price – and hopefully as quickly as possible. The following four myths are commonly accepted as truth among many homeowners. You do not want to make the mistake of thinking these things are true because they aren’t.
Myth #1 – Waiting longer makes better offers appear – This is a common assumption among many people. However, the opposite is true. The longer your home stays on the market, the worse the offers will get or none at all. Reason – as a home sits on the market week after week, buyers start to wonder what is wrong with it. Why has it taken so long to sell? A lot of buyers may spend months looking through listings, so they can see your house when it first goes up, and then the next month and the next. Eventually, they assume you are either pricing your home too high, or there is something seriously wrong with the property.
The number one question all buyers ask their real estate agent is “how long has the home been on the market?” Buyers ask this question for one reason – they want to know the likelihood a seller will negotiate and by how much. Right or wrong, the general assumption with most buyers is the longer a home is for sale, the more negotiating room there should be. This is why pricing a home correctly from the start is so critical.
Myth #2 – Quick offers means the home is priced too low – This statement is one of the more common pricing myths among sellers. The moment your home is listed on the market, it will be seen by multiple buyers. These buyers may have been shopping for weeks or month, looking for a home like yours at a competitive price point. With the right price in the right market, you could get multiple offers in a very short amount of time.
Myth #3 – Unique marketing brings higher prices – “If your home is marketed correctly, it will fetch a higher price”. This statement is 100% true, but that doesn’t mean outside of the box, or crazy marketing ideas make homes sell for more. The market value of your home has nothing to do with outside the box real estate marketing. Marketing is all about visibility and attracting the right kind of buyer. Good marketing will display all the best qualities of your home and encourage potential buyers to look further into the listing and to schedule viewing. But marketing does not change the value of your home. If your home is overpriced, the best marketing in the world won’t sell it!
Myth #4 – We need to price our home with more negotiating room – Negotiating is an essential part of the sales process; there is no denying that. But pricing a home excessively high is not necessary to create an opportunity to negotiate and reach a middle ground. You can expect buyers to make an offer below your original price in many instances, but the negotiating room does not have to be substantial.
Trying to price to create a lot of negotiating room will result in you never getting the chance to settle in the first place. When a home is priced too high, it will be avoided by buyers and their agents. They will all be waiting for the price to go down to something reasonable. If you wait very long, you will run into the problem of buyers thinking something is wrong with your home.
This same thinking goes for pricing your home with room to lower the price. By the time you lower the price, the buyers have already seen your home on the market for a while and, again, may think something is wrong with the home that you need to reduce your price to sell.
Pricing a home properly is key. The price is the most important consideration for getting your home sold. If you get the price wrong, nothing else you do will matter. Setting the right price is 75% of the marketing for your home. The correct price attracts the right buyers.
If you are considering selling your home and would like information about the current real estate market, I would be happy to provide you with a free market analysis. Please call me at 503-717-2154.