Home Pricing Mistakes and How to Avoid Them
When it comes time to sell your Tampa Bay home, you’ll want to gain the most amount of money while selling quickly. And people have come up with all sorts of crazy strategies to sell their home … with very few success stories. So here at Duncan Duo & Associates, we’ve come to debug the myth and strategy to selling your home. The last thing home sellers want is for there listing to sit on the market and be a money drain for them. That’s why finding the right price will not only put your listing on a competitive edge, but will also sell quicker at top dollar.
Mistake #1: Forgoing Research on Your Home
Knowing what other homes sell for in your area is key to success. If you’re listing your home at a million dollars while 2 homes down is selling for $400,000, most chances are people are going to look at the other house no matter how good yours is. Placing your home at the right price, based on other listings, will give your property a competitive edge. Use the market to your advantage. You may even be able to sell your home at a better rate than you thought.
Mistake #2: Pricing Too High From the Start
Following research on the housing market, you don’t want to price your home to high in the beginning. If you do, your listing will end up sitting on the market and becoming stale. Pricing correctly the first time will leave a good impression and grab attention from possible buyers the first time around. It’s common knowledge between agents that the first 10 days is crucial because those are the days that generate the most activity.
Mistake #3: Hiring An Agent Who Offers You the Highest Price
Asking several agents how much you can get for your home is important. If one of them gives you a significantly higher price offering than the others, be cautious. The agent may be trying to “buy” your listing by giving you an unrealistic bid. It’s always best to get a good analysis from several agents to make sure your home is priced at the right level.
Mistake #4: Using an Odd List Price, Like $836,719
Pricing your home at an odd number doesn’t attract home buyers because it’s different. In fact, it loses interest. This is because when people go to search homes, they do it in price categories, like $250,000 – $350,000. So keep your home listing at a round price and keep away from those random numbers.
Mistake #5: Chasing the Market
If you price your home to high to begin with, you may find yourself making regular price drops while never catching up to the market value. An easy example is this: If you put your home on the market for $350,000 while others in the area are going for $325,000, your house might be sitting around for a bit. And after a few months and no showings, you’ll decide to drop the listing down to $325,000, expecting a turnaround. However, home values have declined since then and you’re still not at market value. Home owners tend to keep chasing the market, while their property grows stale and looks like there’s something wrong with it.
Mistake #6: Refusing to Negotiate
Everyone is emotionally attached to their home. You’ve probably spent a lot of time, money, and energy making your home great. And rightfully, you think you should get what you deserve – financially speaking. But there’s something to consider when listing your property (even with all the research and right pricing methods) and that’s homes typically sell 7-9% less than asking price. You should be prepared to be flexible. If you’re not, you’ll probably turn away and discourage serious home buyers.
To learn more about home listings in the Tampa Bay area, search our local guide pages: