Top 7 myths about home pricing
By Eileen Anderson
Overpriced Homes Don’t Sell!
Understanding how the real estate market works is critical to a seller’s success to selling quickly at the best possible price. If you want the best results don’t buy into the following myths about pricing your home to sell. You will only be setting yourself up for failure. Here are 7 of the top seven myths about pricing your home to sell.
Myth #1. An Offer That Comes in Fast Means the Home is Priced Too Low
If you get offers in the first few days then you have priced it correctly. Fear not if you are thinking you priced it too low because you may get multiple offers taking you over asking price. The market will adjust for you. In a seller’s market the inventory may be low with a limited number of homes available to buy. In this situation you may find that offers come in quickly.
It is critical that you find a real estate agent you can trust who knows the market and how to price a home so you will get the best possible price.
Myth #2. Just wait it out and the offer will come
Many people assume that if they wait long enough a good offer will come. I have heard so many times from sellers that they are in “no rush” and can wait for that high offer to roll in months down the road.
Most homes priced correctly will sell in the first few weeks. Serious buyers have hired a professional agent and have seen all that is on the market. The result is the buyers wait for the best possible home to come on the market and if it is the home they are looking for and priced at fair market value they will make an offer.
If they see the house sitting on the market month after month they will assume that there is something wrong with it or it is grossly overpriced. The market will determine the price and if you don’t get any showings at all in the first few weeks you can assume it is highly overpriced and the buyers are waiting for you to get real. If you get showings but no offers then you might be slightly overpriced. The longer the home sits on the market the less negotiating power you have. Buyers will assume you are desperate.
Myth #3. More Marketing Brings Higher Prices.
The market value of your home has nothing to do with how many ads you run or how extensive your social media marketing is. You may expose your home to qualified buyers but without the right price they will not be making an offer anytime soon. Remember that real buyers are represented by an agent and have been pre-approved by a mortgage lender. Their agent will be sure to do their homework on any property that they are interested in and advise them as to the fair market value of the home. They are representing their client’s best interests and will not let them overpay for the home. The risk here is that the property may not appraise and they will not get a mortgage. This will be due to a low appraisal value on the property. Overpricing wastes everyone’s time.
Myth #4. What About Room for Negotiating? Let’s go high!
This is very common myth and if you set the price too high you will never reach a middle ground if you happen to get a low offer. If the price is too high buyers will be advised by their agent to wait until you get real and lower the price. I have often seen a lower or more realistic price be offered and the homeowners become offended and refuse to work with these buyers.
Negotiating is very important and your agent will price your home correctly leaving you some wiggle room. Trust their experience and let them guide you.
Myth #5. More open houses will bring a higher price.
A common real estate myth is that an open house is a great way to sell a home and get a high price for it. Many sellers want and expect their agents to do open houses every weekend and are under the false impression that this will bring in a higher price and sell faster. The truth of the matter is that only 2% of homes are sold at an open house according to the National Association of Realtors.
In all the years I have been in real estate I have only sold 3 houses as a result of an open house and none of these resulted in bringing in a higher price than fair market value.
Myth #6. Let’s just “wait” for the RIGHT Buyer. I Know They Are Out There!
You just know that the one buyer is out there and if you wait long enough they will come. In working with buyers and sellers over the years I have heard many times that “oh well, I guess it wasn’t meant to be.” They just have to wait longer for that one in million buyer that is not represented by an agent to come along and pay more that the home is worth.
An agent that represents a buyer’s best interest will be mindful of the price and ensure their client is making a sound financial decision and not an emotional one. Even if buyers insist on moving forward with the purchase, unless they are a cash buyer, you run the risk of the home not appraising and the buyer not being able to obtain a mortgage. Wouldn’t it be much easier to price the home correctly and sell it fast rather than constantly keep your home perfectly clean and staged for months so it would be ready for showings at a moment’s notice?
Myth #7. Zillow Says It’s Worth More!
PLEASE do not use Zillow to estimate the value of your home! In the following article you will see why a “Zillow estimate of value” is not something of “value”. It may have some other features that are excellent but Zestimate is NOT one of them. They have not previewed your home and made note of any special features or benefits and prices may differ vastly from one street to the next.
BE SUCCESSFUL AND PRICE IT RIGHT! Don’t sabotage the sale of your home!
Attract the right buyers by pricing your home right from the get go. Pricing your home property takes experience and knowledge of the market. When interviewing potential Realtors to sell your home be sure to ask the right questions and make sure they have the negotiating and marketing experience to guide you through this financial investment.
For more information on pricing your home correctly, check out this article on Home Pricing & Selling from Realtor.com. Price your home correctly from day one!
Ten Ways to Know your Home is Overpriced via Bill Gassett
How do I Know if My Home is Overpriced via Kevin Vitali
Reasons Your Home is Not Selling via Anita Clark
My Listing Expired, Now What? via Paul Sian
Thinking of selling your home? I love Real Estate, sharing my knowledge and helping people find the home of their dreams!
I am licensed for residential real estate sales in the state of Connecticut including but not limited to the following CT towns: Avon, Bloomfield, Burlington, Barkhamsted, Canton, Colebrook, East Granby, Hartland, Hartford, Suffield, Windsor, New Hartford, North Granby, Farmington, Simsbury, Suffield and West Hartford, CT.
Real Estate information was provided by Eileen Anderson, a recognized leader in her field. Eileen can be reached via email at Eileen@eileenandersonrealtor.com or by phone at 860-966-2112. Eileen has helped people move in and out of many Connecticut towns for the last 17+ years.