Let’s talk about the correct way to sell and price your home. If you are a seller and are thinking about selling your home, what is it that you want? We have found that all sellers want the same two things. They want to sell their home, and they want to get the most amount of money for it. How do you do that? Simply put you expose your home to the most qualified buyers in the market place. Let me say that again. To get the most money out of your home you expose your home to the most qualified buyers in the market place.
Three Common Mistakes
There are usually three things that sellers think, that is actually quite contrary to getting the most money out of their home. The first is the thought that they will price the home high, and let the buyer negotiate the price down. The second is that they are not in any big hurry to sell. The third is along the same vein as number two, and that thought is you don’t have to sell. We will talk about pricing in a minute, but the last two we will talk about now.
It’s quite simple. Sellers, time is not on your side. Especially in the market we are in now, with spring and summer just around the corner. Those are the busiest times to sell your home. If your home sits on the market because you aren’t in any big hurry to sell, there are usually two thoughts that a buyer has when they look at your home that has been sitting on the market for 60+ days. One thought is that they house has been sitting on the market for so long because it is over-priced. The second thought is that there must be something wrong with the home because it has been sitting on the market for so long. Or they could potentially think both. All of those scenarios are bad. Sometimes, they won’t even bother going to see your home!
What About Pricing?
Pricing your home high has the same effect. Buyers are very educated about the market. They usually know what a home is worth before they even call their agent to take them to see it. So how do you correctly price your home? The first step is to think like a buyer. Let’ say that your home is worth $405,000. Do you price your home at $395,000, $410,000 or $400,000? You price the home at $400,000 and here is why. As a seller you want to expose your home to as many qualified buyers as possible right? When someone decides to start looking to buy a home they get preapproved. If they are approved at $415,000, they will usually start looking for homes in the $350,000 to $400,000 range because most buyers are comfortable at payments lower than what they are approved at.
So why do we price it at $400,000 when it’s worth $405,000? Why not $395,000? If you do that, you are only exposing it to people that are searching that $350,000 – $400,000. So why you price it at $400,000 when its worth $405,000? It’s simple. It’s because you expose it to people that are looking in the $400,000 – $425,000 range. People are funny. They are very calculating when they start looking for a home, up until they find a home that they fall in love with. Then they start to do things they normally wouldn’t do. And if they are in competition with another person for the home that they have fallen in love with, then they really start doing crazy things. They will pay more for a home they love. Real estate is a very emotional experience, and that is the goal: to get multiple buyers in competition over the same house that they have fallen in love with.
This is just a general strategy. Every home has the potential to be different than the next and usually they are. There are multiple strategies for getting your home on the market. If you are interested in hearing more or want a no obligation consultation, feel free to contact us today, and see how we might be able to help you get the most amount of money for your home.