Today’s buyers are well-informed about property pricing and fair market value. Therefore, sellers need to price their property accordingly to ensure that they will attract the right buyers.

A vital aspect of selling a home is its listing price, so having a good pricing strategy is essential to finding the right buyer. Homeowners must have a plan of action if wanting to achieve the best possible selling price.

Six common pricing mistakes to avoid:

Overpricing

The most common pricing mistake is inflating listing prices to counteract buyer negotiations. Many homeowners perceive their home to be the best in the neighborhood and set a price that is relative to the value they perceive. However, buyers may not perceive the same value. An inflated price will leave out potential buyers, especially if statistics and recent sales figures of other properties in the area don’t support the asking price. The seller will run the risk of multiple price reductions, which could have the home sitting on the market for longer than necessary.

Disregarding recent home sale prices

Often the selling price varies from the initial asking price. To gauge the fair market value and arrive at an asking price that will generate buyer interest, sellers cannot base their assessment on what other homes in the area were listed at, but rather on the price they achieved.

Not considering online search parameters

Most buyers start their home search online. It’s crucial to consider this when setting an asking price. Property search portals require the user to enter a price range to narrow down their search options. While the ultimate decision lies with the seller and their agent, it is worth considering the search portal price ranges when setting the price.

Not open to negotiation

Deals die quickly if the parties are not open to negotiating. This will largely be influenced by how quickly they would like to sell, and how much money they require to get out of the sale. Staying steadfast on the asking price or other conditions could mean that the seller is in for a long ride during the selling process.

Not taking the agent’s insights into consideration

An agent will have access to resources and information that the homeowner will not. They will base their assessment on facts and figures, without bringing emotion into the equation. An agent will be able to provide an unbiased opinion, looking at the situation from all angles, such as the home’s features, the local market, recent sales and more.

Sourced by: Private Property