Are you wondering why your home is struggling to sell after months of being on the market, while The Smith’s two houses down the road sold in a matter of days? Have you considered that maybe your price is too high? Homes can struggle to sell for several different reasons, but most commonly, it comes down to incorrect pricing. We draw attention to the aspects you should keep an eye on!
Price to sell
Some homes are overpriced right from the get-go. While it’s understandable that you want to yield the highest price you can for your property, your biggest priority should be, in fact, selling it! To ensure this happens sooner rather than later, the price needs to be right.
Sellers have been known to list at an inflated price as a means of ‘testing’ the market. However, we would always advise against this as it may potentially backfire. The savvy buyer would have most likely conducted their own market research before they even thought about visiting home opens, arming themselves with a general understanding of property values in the area. If your 3×2 property is priced at $500,000 and a few doors down there is a similar property priced at $415,000, questions will be raised, naturally.
This is why we always recommend speaking to an experienced professional. Your real estate agent will know the market like the back of their hand and can typically price your home (within a range of course) from the second they walk through the door.
They will also conduct research on your behalf on similar homes in your area which are selling or have recently sold.
Keep in mind, supply and demand in your area will also be a major factor, as well as the current state of the property market.
Avoid the highest price
Remaining realistic is the key…
We always recommend you receive three appraisals for your property by various local agents to ensure you have room to compare. It is also important not to disclose how much a previous agent appraised at to ensure a completely unbiased approach by each individual agent.
The highest appraised price should not necessarily be your deciding factor. Rather, your decision should be based on the agent’s familiarity with your local area and their sales history. You could even ask an agent how they came about to estimating that particular price, and how they will market your home to ensure you can achieve a price as close to their estimate as possible.
The danger associated with expired listings
If you choose an agent based on their high valuation of your property, you run the risk of being overpriced and sitting on the market for weeks with no interest.
With your home on the market for a few weeks and no sale, people might start to wonder what is wrong with your property. If you then opt to hire a second agent who goes on to lower the price, this will only confirm onlookers’ speculations, leading to further negative perceptions.
If you’re thinking of selling, conduct your own market research, consider where your property sits realistically and seek help form a professional real estate agent!