The Number One Mistake Sellers Are Making: Overpricing Their House
The number one mistake sellers are making in today’s housing market is overpricing their homes. This leads to houses sitting on the market for a long time with no offers coming in. When that happens, the homeowner may need to forget about the asking price they originally wanted and lower their price in order to regain buyer interest.
Data from Realtor.com shows the number of homeowners realizing this mistake, and doing a price reduction is going up:
If you are thinking of moving into a new home and selling your home now, it is important to avoid any mistakes. To start, it is best to work with Clara Duran Reed, your trusted real estate agent at The Duran Reed Firm Realtors. Clara will help you find the right price to sell your home. Let’s take a look what will be at stake if you don’t:
Not Paying Attention to Current Market Conditions
It is crucial to understand current market conditions for pricing your home accurately. Do not set your asking price on your home based on what happened during the COVID pandemic. The market has changed since the year 2020, so it’s important to market your home and align your price with today’s reality.
Real estate agents are updated with the market trends and will be able to help you with pricing your home accurately. They will know the market trends and how they will impact the pricing strategy of your house
Pricing it Based on What You Want to Make (Not What It’s Worth)
Another mistake sellers commonly make is pricing the home on what they want to make on the sale, not necessarily the current market value. You may see other homes in your area selling for very high prices but that may not mean that you can do the same. You may try to sell your home based on other high priced homes that do not have the same conditions and features as yours. That other home that is selling at a high price may have a newly remodeled interior or outdoor pool. To sum it up, Bankrate explains:
“How do you that sweet spot of pricing for profit but not overpricing? The expertise of your agent can be truly valuable here. A knowledgeable agent will understand fair market value in your area, how much your house is worth and how much you might reasonably expect to get it in the current market.”
Once you partner with an agent to help you sell your home, they will do a comparative market analysis (CMA) to make sure your house is accurately compared with similar properties to get an accurate look at how it should be priced.
Pricing High to Leave Room for Negotiation
Another common mistake sellers make is to purposely price their house high to then have room to negotiate down during the sale of the home. This can however backfire, because this will deter potential buyers from even considering the home. You would be turning away potential buyers by pricing your home too high. U.S. News Real Estate explains:
“You want to sell your house for top dollar, but be realistic about the value of the property and how buyers will see it. If you’ve overpriced your home, chances are you’ll eventually need to lower the number, but the peak period of activity that new listing experiences is already gone.”
Clara Duran Reed from The Duran Reed Firm can help you set a fair price that attract buyers and encourages more competitive offers.
Summary
Overpricing your home can come with unfortunate, serious, long lasting consequences. A knowledgeable real estate agent such as Clara Duran Reed, can help you sell your home correctly with market knowledge on homes in your area, and will bring a strategic approach in pricing your home accurately.
Connect with Clara today to avoid making a serious pricing mistake that will cost you.
(310) 519-7670