This is from my weekly real estate article at GoRapids.com:
Is there anything more important to you than the price your home sells for? I can’t think of anything. Maybe if you’re selling to a son or daughter. But is there another reason?
If you could leave your home as is; as in no cleaning, painting, rearranging etc. and you’d be still be guaranteed to get $200,000, would you be ecstatic? So let’s do it. Sadly though, we both know every home isn’t worth $200,000.
But you’d still like to squeeze a few thousand dollars extra out of your home. Is it possible? Probably not. Continue reading why.
This article is not how you can increase your listing price. Instead this article will show you 5 common pricing mistakes Wisconsin Rapids sellers often make.
How this one number can make or break a sale. And how adding even a few thousand dollars to your listing price can end up costing you even more in the end.
Mistake #1: Not following what the research says your home is worth
On face value this seems like an easy mistake to avoid. You want to sell your home so you say you’ll trust what your agent says. Your agent performs a Competitive Market Analysis to gauge what your home’s worth.
They find homes in your area that have sold and for what. They diagnose why some homes didn’t sell. Was it priced to high? Was the condition of the home subpar? And they’ll make sure you don’t repeat the same mistakes.
Easy right? But, consider two questions you’ll ask yourself:
- How much do you still owe on your mortgage and home-equity loans?
- What’s the price of the home you want to move into?
Now all of a sudden pricing becomes more difficult. Do you price your home solely on what the comparable sales tell you or do you price it at what you’d like to get out of it?
Mistake #2: Overpricing your home because you can wait
You’re in no rush to sell. It can sell today, next month or next year…
You tell yourself it only takes one buyer. But what if they never come?
If your home isn’t comparable to other homes in your price range why would a buyer even consider looking at yours? If all homes are new and yours is 35 years old? If all homes have a master bath and yours doesn’t? If all homes have sold for $25,000 less?
Mistake #3: Choosing to price high at the beginning and lower later
There’s a sucker born every minute. Right? You’ll have your home listed for $15,000 higher than what you feel it’s worth for the first month. Then you’ll lower it.
Problem is the first two weeks your home is on the market are the best two weeks you’ll have to sell. The reason is all agents in the real estate office will walk through your home. Next, your home will show up as a new listing in the MLS that all area agents will see. That’s a lot of eyeballs…
But if your home is overpriced what will Realtors think when they view your home? Why will they call their buyers about this new overpriced home that has just hit the market?
Can you hear the conversation? Agent—“I have the perfect home for you. It has nothing you’re looking for except that it’s priced at what you want to pay!” Buyer—“Why would I want to look at that?” Agent—“Didn’t you hear me? It’s listed at what you want to pay. How perfect is that?!?! I’ll get the papers ready.”
Do you think this is farfetched? Continue reading…
Mistake #4: Hiring the agent who offers the highest price for your home
Can you think of an easier way for an agent to get a listing? I simply find out what other agents have said your home is worth and add a few thousand dollars more.
Perfect. I’ll have all listings in Wisconsin Rapids. Here’s my new tagline—Adam Holberg—I will list your home for $250,000! Guaranteed!
My number’s at the bottom of this post. I’m waiting for your phone call.
What, no dice? What do you mean all homes aren’t worth $250,000? I counter that your home isn’t worth $10,000 over a comparable sale a month ago either.
I understand that you want to purchase a bigger home, pay for your child’s college tuition, slash a little bit of debt or even take a vacation. But if your home doesn’t sell, what exactly can you do with phantom money?
Mistake #5: Getting emotionally involved in the pricing process
You’ve made your house a home. You have memories. On top of that you’ve now been cleaning, painting as well as some updating.
It’s difficult to put a price on all this time, isn’t it? But, you’ll try… Realtor says your home is worth $104,000. But you paid $98,750 eight years ago. Are you happy? How easy is it to now put a price on your memories and time invested?
Conclusion
Whew! I’m glad you made it this far. I hope you realize that pricing pays a huge roll in your home selling. There are no secrets in the real estate business. Buyers understand real estate better now than ever before.
Before you sign on the dotted line remember: You don’t want your home listed, you want it sold.
Would you like to know the value of your home? Fill out this short form, and you’ll know approximately what your home is worth. Need to be more exact? Contact me to set up an appointment so you can give me the grand tour.
PHONE: (715) 572-8372
My name is Adam Holberg and I’m a Realtor with First Weber of Wisconsin Rapids. This website is designed to inform and help bring conversation to a topic I love, real estate.