Ready to Sell? Don't Make This Mistake.

In today’s housing market many sellers are making the critical mistake of overpricing. This common error can lead to houses sitting on the market for a long time without any offers. And when that happens, homeowners may have to drop their asking prices to try to re-ignite buyer interest.

Data from Realtor.com shows the number of homeowners realizing this mistake and doing a price reduction is climbing (see graph below):

If you’re thinking about making a move, here’s what you need to know. The best way to avoid making a costly mistake is to work with us to find the right price. Not the price you want or what your cousin Jimmy, who bought a house 20 years ago, tells you it should be.

Here are some common mistakes that we see being made right now.

Not Paying Attention To Current Market Conditions

Understanding current market conditions is key to accurate pricing. You don’t want to set your asking price based on what happened during the pandemic. The market has moderated a lot since then, so it’s far better to align your price with today’s reality.

It’s our job to stay updated on market trends and how they impact the pricing strategy for your house.

Pricing It Based on What You Want To Make (Not What It’s Worth)

Another misstep is pricing based on what you want to make on the sale, and not necessarily current market value. You may see other homes in your neighborhood selling for top dollar and assume yours can do the same. But you may not be considering differences in size, condition, and features.

As Bankrate explains: “How do you find that sweet spot of pricing for profit but not overpricing? The expertise of your agent can be truly valuable here. A knowledgeable agent will understand fair market value in your area, how much your house is worth and how much you might reasonably expect to get for it in the current market.”

We will provide you with a comparative market analysis (CMA) to make sure your house is compared with truly similar properties to get an accurate look at how it should be priced. The key here is similar. A home that’s up the street from yours, but is larger, has a brand-new kitchen and a two-car garage, is not the same, if your kitchen is 20 years old and you don’t even have a garage.

Pricing High to Leave Room for Negotiation

Another common, yet misguided strategy is to price your house high on purpose, so you have more room to negotiate down during the sale. This can backfire. A price that seems too high often stops potential buyers from even considering the home. So rather than leaving room for negotiation, what you’ll actually be doing is turning buyers away. 

U.S. News Real Estate explains: “You want to sell your house for top dollar, but be realistic about the value of the property and how buyers will see it. If you’ve overpriced your home, chances are you’ll eventually need to lower the number, but the peak period of activity that a new listing experiences is already gone.”

We can help you set a fair price that attracts buyers and encourages more competitive offers.

We understand that it’s tough to hear that your home isn’t worth what you believe it is. But, money can be lost while chasing unrealistic expectations. We won’t get into the details, but we’re familiar with a transaction where the sellers lost at least $100,000.00 because they stuck with a price that the data didn’t support, and they were never going to get. While several buyers were interested in the property, the asking price plus the money needed for updates made the house just too expensive.

Bottom Line

Overpricing your home can have serious consequences. We offer 25 years of experience selling more than 400 homes and have objective, in-depth knowledge about the market, a strategic approach to pricing, and an aggressive marketing plan.

If you’re ready to sell — and with interest rates dropping more homeowners will be deciding to market their houses — let’s connect at 508-360-5664 or [email protected] so you can avoid making a pricing mistake that could cost you thousands.

Let’s talk soon…

Mari and Hank

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision.