Windsor Home Pricing Mistakes

Posted in General Blog | 23/02/2013

Windsor Home

Windsor Home

Now that you are putting your Windsor home on the market, let’s review the biggest mistake you can make when selling your property:

NOT PRICING YOUR HOME CORRECTLY!!!

Unfortunately, there is no magic formula that will automatically give you the right price for your home.  If only it were that simple.  But when listing your house at the right price, it means your home has an excellent chance of being sold quickly.  But selling at the wrong price means your home will sit on the market for months.

Here are the mistakes many sellers make.

1.  Ignoring research:

Setting the right price for a home takes research.  And this doesn’t mean walking around the neighbourhood, looking at a home and saying, “That sounds good to me.”  It also doesn’t mean that you add the costs of all of the home improvements you made.  For example, if you paid $50,000 for a swimming pool, you don’t add that number to the price.  It doesn’t work that way.

You need a comparative market analysis, or comps, that are prepared by a professional real estate agent.  Here, they look at recent sales of homes in your area that are similar to your property.

2.  Selecting An Agent Because They Promise You The Highest Price:

Let’s say you interview three agents, which is what we always suggest.  The first two come back and are within a reasonable amount of each other.  But the third promises you a significantly higher bid than the others.  It’s such a big difference that you can’t believe your good fortune, and sign the agent right away. The problem?  The agent may be trying to buy your listing knowing full well they can never get that price.  Make sure that whatever agent you select, they can back up their suggested listing price with comps.

3.  Becoming Emotionally Involved In The Process:

We know that this is difficult, but it’s important that you not become emotionally involved when selling a home.  How can this be?  For sellers, note that buyers walking into your home don’t see it as you do.  Even if they want to make an offer, they want it for as low as they can get, so they are bound to find problems.  Your job is to stay objective and understand that if they didn’t want your home, they wouldn’t be making an offer.  Negotiate and don’t turn down an offer because it’s too low.  Counter to keep the process going.  If they don’t budge, then you can pass if needed.  But keep your emotions out of it.  Too many good sales have been thwarted because sellers can’t remember that this is a business transaction.

4.  Pricing too high:

images-6What happens when you price your home too high?  Again, it sits with little to no traffic.  This is how you know your property is overpriced.  The first ten days are crucial for activity as that is when interest is at its highest.  After that, the buzz quickly wears down and you have the unenviable reputation of having a home that is listed way too high.  In the meantime, other reasonably priced homes are being sold and yours continues to be forgotten.  When you reduce the price, new buyers are concerned that your property has been sitting on the market too long, so they assume something is wrong with it.

In the meantime, you are still making mortgage and insurance payments, paying utility costs and maintaining a home.  Price it right, and it will sell.

5.  Testing Your Home:

Many sellers simply want to see if their home will sell at a higher price because they are in no hurry to sell.  But as mentioned above, the longer it stays on the market, the bigger stigma it receives from agents and their clients.  No one wants to waste their client’s time by taking them to a house that is overpriced.

6.  Don’t wait to make a price reduction:

Many sellers, when realizing their home is overpriced, sit back and wait to lower the price.  If after ten days you don’t see any activity, then by all means lower the price then.  The longer you wait, the longer it will sit.  Whether it is pride or waiting for another few weeks because you don’t want to throw in the towel in case the buyer will come, believe it when we say buyers won’t overspend on a property.  Times have changed and they want a home that is priced right.

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