The Dangers of Pricing Your Home Too High
Selling a home is a big decision, and one of the most important aspects of the process is determining the right price. Unfortunately, some sellers make the mistake of pricing their homes too high, which can lead to a host of problems down the line. In this blog post, we’ll explore some of the reasons why people price their homes too high when they sell them, and the potential consequences of doing so.
1. Testing the Market
One of the most common reasons why people price their homes too high is because they want to “test the market.” In other words, they want to see if there are any buyers out there who are willing to pay more than what they think their home is worth. While this may seem like a logical strategy, it can backfire in a big way. Overpricing your home can make it less appealing to buyers who are looking in your price range, and it can also turn off potential buyers who might be willing to pay more for a home that is priced appropriately. For example, a home that is worth $600K and the list price was $600K, it would be more likely to get that amount. However, if you listed a home that was only worth $575K for $600K, price reductions might eventually lead to a sale price of only $540K.
2. Leaving Room for Negotiations
Another reason why people may overprice their homes is that they want to leave room for negotiations. They may assume that buyers will try to negotiate the price down, so they start with a higher price in order to end up at the price they really want. However, this strategy can also be counterproductive. If your home is significantly overpriced, buyers may not even bother making an offer, or they may assume that you’re not serious about selling.
3. Believing a Higher List Price Will Result in a Higher Sale Price
Some sellers mistakenly believe that if they list their home at a higher price, they will end up selling it for more money. However, this is not necessarily the case. Buyers are savvy, and they will typically do their research to determine what a home is really worth. If your home is priced much higher than other similar homes in the area, buyers may simply choose to look elsewhere.
4. Misinformed About the Market
Finally, some sellers may overprice their homes because they are misinformed about the market. They may have received bad advice from a friend, neighbor, or another realtor who is not familiar with the local market conditions. It’s important to work with a realtor who has experience selling homes in your area and who can provide you with accurate information about pricing and market trends.
So, what are the consequences of overpricing your home? The most obvious consequence is that your home may sit on the market for longer than it should. This can lead to a variety of problems, including:
• Reduced interest from buyers
• Fewer showings
• Lowball offers
• A lower eventual sales price
In addition, if your home sits on the market for too long, it can start to develop a stigma. Buyers may assume that there is something wrong with the home, or they may wonder why it hasn’t sold yet. This can make it even more difficult to sell the home in the future.
In conclusion, pricing your home appropriately is crucial if you want to sell it quickly and for a fair price. While it may be tempting to overprice your home for any of the reasons mentioned above, it’s important to resist the urge and work with a realtor who can provide you with accurate information about pricing and market conditions. By doing so, you can avoid the pitfalls of overpricing and increase your chances of a successful sale.
Not All CMA’s Are The Same
Successful home sellers know that the key to a quicker, less stressful sale begins with an appropriate listing price. Before boxes are packed or walls are painted, understanding your home’s market value should be your number one priority. General Market Analysis Summary also known as a CMA (Comparative Market Analysis) is the first step to estimate the value of a home sale relative to comparable properties in your area.
Factors that influence a CMA include:
– Square footage
– The number of bedrooms and baths
– The age of the home
– Construction and style
– Neighborhood and schools
However, not all CMA’s are the same. There is no standard process for creating CMA’s. Each agent has their own tools and methodology. The CMA you receive from the Curtin Team is different than CMA’s developed by other agents because we use a variety of tools such as the MLS (Multiple Listing Service), tax records, and an understanding of off-market sales. This deep knowledge of the local market makes our CMA’s invaluable to sellers looking to price their homes appropriately for the market.
A CMA from the Curtin Team helps match buyers and sellers with the best options in their price range and desired location and allows sellers’ homes to spend the shortest possible time on the market. Our List to Sale price ratio (seller’s asking price to the actual sale price) is above industry averages because of the way we strategically analyze this data to accurately price your home.
Stat Chat: Explaining The State of Today’s Market
Sellers have enjoyed a great five- to six-year run having the upper hand in our market, but now that conditions are shifting, those looking to list have become a little more apprehensive about making a move.
If you’re still thinking of selling, though, don’t be discouraged. Prices may be softening and inventory is definitely growing, but today I’d like to share five tips and tricks that will help you win in our market:
1. Price your home right from the start. Buyers know a bad deal when they spot one, and since they’ll be comparing your property against several others in the market, you need to make sure that your price is fair and competitive.
2. Have your home in near-perfect condition. The days of selling a home regardless of its condition are gone. Today’s buyers expect homes to be fresh, neat, and updated.
3. Don’t hesitate to adjust your price if necessary. If after 10 showings you haven’t received a single offer, it’s time to adjust your price.
4. Consider a reverse offer. Sometimes if buyers aren’t coming to you, then you should go to them. Writing a reverse offer will not only flatter a buyer, but it can also boost your chances of striking a deal.
5. Offer concessions. If you sweeten the deal by offering to pay closing costs or forgo certain contingencies, buyers may be more willing to move forward with purchasing your home.
Today’s buyers expect homes to be fresh, neat, and updated.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.
Home Styling | How to “Undecorate”
Home Styling | How to “Undecorate”
As I was packing away decorations after the holidays it occurred to me how similar the task is to home styling. It’s what I like to call “undecorating”. Undecorating is the process of removing personal and specific decorations, leaving behind a more neutral palette. Having a clean palette is important to attract potential buyers. When the slate is clean, buyers can imagine themselves living in the space.
As new year resolutions are made and we vow to get more organized, this is a wonderful time to start preparing your home to beat the spring selling rush. When you’re packing away holiday decorations go ahead and pack up family photos, decor and personal items. Not only will you be de-cluttering, but you’ll also get a jump start on packing items that you’ll have to pack later anyway!
Where Do I Start?
It’s easy to get overwhelmed, so start off easy. Begin with your junk drawers, closets and pantry. Make three separate piles: one that you keep, one for donation, and one that goes straight to the trash.
Closets should be about one third full so that prospective buyers can see the amount storage is available. Pack away clothing that’s not in season. Use storage baskets and containers in drawers, cabinets and the pantry for a simple and tidy look. Once you have tackled the de-cluttering you can focus on larger projects. Keep in mind that as the spring market approaches, the busier contractors get and the longer it takes to get on their schedule.
Use these easy tips and you’ll be able to stick to your New Year’s resolution and be ahead of the spring market!