1. Research, research, research
The biggest mistake that sellers can make is trying to base their home’s price on the listing price of similar homes on the market. Active listings haven’t sold yet! The more effective method is looking at the actual sold price of similar properties. Working with a real estate professional helps sellers get access to market reports that will be instrumental in selecting the optimal price for the home.
2. Don’t let emotions get the best of you
Of course it’s hard for your clients to stay objective when putting a price tag on something they’re so emotionally connected to, but leaving emotions at the door is key to making sure the price is right. Helping your client to focus on research and local stats rather than the sentimental feelings and energy they’ve invested into the home will help you all choose the price that’s going to get the home sold.
3. Pick a “normal” listing price
We know your clients are creative, but choosing an out-of-the-ordinary listing price can actually hurt the chances of selling the home. $652,347 may include your client’s’ favorite numbers but that price is going to stand out in a list of search results – and not in a good way! Potential buyers will wonder why such a strange price has been chosen and may avoid taking a look at the house at all.
4.Avoid high pricing based on time available
Your clients may not be in a huge rush to sell, but as we all know – pricing high just because there’s “time” is not a formula for success. Homes have a greater chance of selling when they’re new to the market – this is when they generate the most traffic and interest. Price drops and too much time on the market can be detractors to serious buyers and make them wonder if there’s something “wrong” with the home. This is especially important now that many publisher websites highlight the property history and listing activity, including days on market and price changes, directly on the listing.
5. Be open to negotiation
Make sure you have a contingency plan in place if your seller is on the stubborn side and refuses to lower their asking price when you initially list the home. You should have a “Plan B” already in place if the property doesn’t sell at the desired price in a designated amount of time. That plan should be to lower the price to the number you feel more comfortable with. Having this discussion before the house goes on the market will help you set expectations with your client and save you from having a much harder conversation down the road.
The bottom line is that pricing a home right, from the start, will help you sell the home faster and generate the most interest right from the first day on market. At the end of the day, the final pricing may be up to your client but providing them with the tips above at the beginning of the selling process can help them avoid the common mistakes that end with their housing sitting on the market for months.