When thinking of selling a house, it can be tempting to start dreaming of the massive pile of cash a real estate agent will bring to you at closing. It’s going to be simple, fast, and you’re going to make a killing. Unfortunately, a lot of people fall into this trap and make the wrong choices when it comes to putting your home for sale.
Ignoring What Buyer is Willing to Pay
Whatever you think your home is worth, whether your house is a one or two bedroom bungalow or a 7 bedroom luxury home, the most honest thing anyone can say about your home’s value is that what you think and want to get for it almost doesn’t matter. Often times, the value you assign to the house that’s been your home for any length of time is going to be higher than it actually is worth. Anybody would have trouble separating the emotional attachment they have to their home from the reality of how a constantly fluctuating real estate market would value it. As harsh as it sounds – it doesn’t matter what you think your home is worth and it doesn’t even matter what your real estate agent thinks its worth.
If there’s one opinion that counts the most, it’s that of one individual – the Buyer. After all, buyers drive real estate market. If there is no potential buyer, then who will buy your home and how would selling a house be possible?
What List Price Will Help Selling a House?
When it comes to deciding what listing price of your home should be at, the tricky part is finding the right balance between what the seller wants to get and the buyer is willing to spend. Sometimes it can be a very difficult task to accomplish especially in the neighborhood that doesn’t have frequent real estate sales activity. And sometimes even the most experienced Realtor selling a house for you might struggle coming up with a good list price.
Listing High Because You Feel Like It
There’s no set formula that determines the best possible list price. Things like your neighborhood home values, recent home sales of the comps, and local real estate market dynamics all have an impact upon the varying prices your house could be sold at. One appraisal is not going to be exactly the same as another, no matter how many appraisers you hire. Two different Realtors might have different price opinions.
The biggest mistake you can make is to overestimate the value of your house and to forget about the wants and needs of the buyer in the current market. Meeting up with a real estate agent can help find a starting point. The more educated you are about current real estate market conditions – the better decision you will make when selling a house. It can be very easy to get side tracked by emotions that you have developed over the years of living there. It is also easy to start spending the money that you could have after selling your house. You start to think about how much bigger your next house might be. Maybe you could afford a down payment on a shiny new car…or it might be possible to take that trip to Italy you’ve always wanted. Who wouldn’t want more to spend on something fun, or have more in a savings account?
Listing High Because Real Estate Agent Said So
Don’t fall into that trap. Oftentimes, inexperienced sellers will go with Realtors that will give them the highest suggested asking price. And if you’re looking at mistakes to avoid, that’s could be the worst one and you might end up dropping the price week after week.
It’s important to remember that selling a house will never be determined by how much a seller wants to pocket. Instead, the key to sealing the deal is figuring out how much the Buyer is willing to spend in current market. Of course, that’s not to say that you should take the very first offer that comes on the table. It’s a negotiation that happens between the two parties that will ultimately end up satisfying both you and the buyer.
Homes listed too high will seldom attract much attention other than those people who are curious to have a look inside, but whose checkbooks are still safely at home and probably not going anywhere. So, it’s important to find the right partner in getting your home sold. It can be dangerous when overpricing the house. Before you know it, the listing will have expired, you’ll have had your home listed for months, if not a year or more, and you’ll have watched the listing price plummet if you’re not lucky enough to catch a lucky break in the market.
High Days On The Market
People who’ve made those kinds of mistakes often end up taking significant losses on properties that have sat for long periods at unreasonable prices. Listings that have gone stale after so long can put off buyers, meaning that the value buyers see when they look at your home may go down as they start to ask themselves, “Why hasn’t anyone bought this house yet?”
Listing Low Might Get You More!
Don’t let that happen to you! Starting the process of selling a house with lower listing price will attract more genuinely interested buyers, and more than likely the competition between them will help to drive up the price to something more in line with what you want to get.
Not Knowing How To Present Your Home
Every buyer is different; therefore you will never be able to meet everybody’s wants and needs. Some buyers will look at your home and will focus on all the positive features and others will focus on the negatives that will make it a tough sale to them. Some buyers will consider the things that you love about your house a turn off and won’t buy your home just for that reason.
Having a swimming pool is a good example. A swimming pool is a big plus in some states, but in Minnesota it can make it very difficult when it comes to selling a house. Some buyers love it – others hate it. Swimming pool adds more maintenance and adds to expenses. Also, it serves only seasonally in MN so you can’t enjoy it all year round. When selling a house, you need to know what buyers are looking for so you can present your home in the best way possible and turn a potential weakness into strength.
Real estate is often a game of careful planning and patience, so keep with it!