THIS IS A TEST:
What is the #1 most common mistake that seller’s make?
A) Over cleaning
B) Over preparing
C) Over pricing (hint: It is probably this one)
D) None of the above (hint: go back to letter “C”)
CORRECT! Overpricing is the #1 mistake seller’s make most often. Overpricing usually leads to longer market times and lower final sales prices.
If you are thinking of selling, keep in mind that you can price your home in one of two ways;
1) Priced to be “on the market” or (2) Priced to sell
In addition, there are five general principles that all sellers should consider before pricing their home:
1. Value is determined not by what you need or have invested in your property but by what a buyer is willing to pay.
2. The higher you price your property above fair market value, the fewer the number of available buyers.
3. The greatest number of showings occur when your property first comes on the market; it quickly attracts the attention of the largest number of buyers looking for a property in that price range.
4. The closer the listing price of your property is to fair market value, the higher the selling price you’ll likely receive. Too high a listing price attracts the wrong buyers and the right buyers won’t see your property.
5. The length of time your property is on the market may affect the selling price you receive. In a buyer’s mind, too much time on the market indicates an overpriced property. To a buyer, it presents an opportunity to negotiate a price lower than you might have originally received.
Kevin’s advice? Discuss your pricing strategy at length with your Realtor. He or she will provide you with detailed information in a comparable market analysis report. The market is constantly changing and your Realtor is tuned in every day to how the current market will affect your home’s value. Ignore your neighbors, friends and family’s opinions of the value of your home and pay attention to your Realtor. That way, you are much more likely to make the most amount of money, in the shortest amount of time.
All my best,