Your pricing strategy plays a major role in selling your house. Price it high and it may sit long on the market. Price it low and you will lose a lot of money on the table. Doing any of these has negative impacts on your property’s sale so it is imperative to set the right and fair price.
Price Right and Sell Your House Fast in Washington DC
Home sellers want to get the most of their sale. However, with their fervor to sell it fast, they instead make mistakes that delay the sale. Below are 6 of the most common house pricing mistakes homeowners make and ways to avoid these blunders.
1. Home Sellers Don’t Do Research
Some home sellers based their pricing on hearsays and suggestions. This shouldn’t be. As home sellers, it is important to do intensive research and investigate on the market activities before you finally set a sale price for your property.
Don’t just rely on the listing prices as they are not accurate. The majority of these houses are typically sold at 7% to 9% less their asking price so you might set your home a higher value than the average market rate. Instead, base your price on your competition. This is way truthful than the listing.
Real estate agents can do an in-depth study of the comparative market analysis of the housing market nearby. This report tells how much the recently sold properties within your area were priced. From there, decide on the price your property deserves.
2. Home Sellers are Emotionally Attached
Your house’s worth is not determined by the time and effort you spent in your home. Although it’s natural to get emotionally involved in pricing your property, buyers won’t feel a similar way. This is one of the common mistakes first-time home sellers fall into. But this should not be a determining factor for your listing price.
Instead, focus on the statistics offered by the competitive market value and stay objective on coming up with your price. Don’t feel upset of low ball offers as they are good bases to negotiate your sale.
3. Home Sellers Overpriced their Property
The first 10 days of your listing is the most crucial as it generates more activities in the market so make sure it gets the best first impression. Usually, homebuyers opt to overprice their property especially if they are not in a rush. However, that might cause negative notion to your listing.
Home buyers tend to ignore overpriced properties, especially if it is out of their range. This is a key reason why some properties sit longer in the market. By the time you cut the price lower, they could have possibly found a better deal.
To avoid this mistake, set a fair and competitive price for your home to attract serious buyers and sell your house faster. This is way better than paying for more fees while your list is sitting longer on the market.
4. Sets High Price in case of Negotiations
Home sellers believe that pricing high is ideal to make room for negotiations. However, this is actually a major mistake to avoid. Although this practice has been common in the marketing game, it could shun serious buyers away from your offer.
Buyers are smart. They are armed with tools to start their house hunt. Through the internet and the data from CMA, they can determine which homes are priced fairly and are over-priced.
Price your property accurately. Do not worry on buyers that keep asking for low-ball prices. You will for sure meet serious buyers that will buy your house at your price or even make better offers. You can also sell your house to cash home buyers.
5. Expect 100% Returns
You have invested thousands of dollars in putting up better amenities on your home before you make it on sale. However, never expect that you will recoup your expenses by increasing its value. While some renovations and repairs can sell your house fast, never expect a 100% return. Your house’s worth is usually less than 80% of your total investment.
Even you made serious home improvements for a more marketable property, remember that they still depreciate in value. Just accept the fact that overpricing your property won’t get your money back in full.
6. Based Price on Other Purchases and Personal Needs
Home sellers tend to price their property based on their future needs. They want to purchase a new home, indulge themselves to luxurious holiday breaks, or use the money to pay their debts or mortgages. While this is common, increment pricing to satisfy your pressing need has no merit.
Price your property right. This would help you sell your home faster and bring higher returns.
Pricing your property is the most challenging task in the house selling process. This is no wonder why sellers made these errors. Steer away from these 6 home selling mistakes to guarantee a quick sale at the price your house deserves.
On the other hand, if you want to avoid these pricing mistakes, The Home Buyers is here.
We buy houses at a competitive pricing scheme based on its condition, age, location, and features. We also consider the repair costs and study the housing market to come up with the best value.