- Terry BallantyneWhy Poor Pricing Choice Will Kill Your Sale
How To Price Your Home For Success
In a market that has created the impression that every home sells, it’s easy for sellers to fall victim to the fear of leaving money on the table. And some, who have not sold a home in a while, they still believe in the old “wiggle room” theory of home sales which went out the window in 1999.
Today if your home is overpriced by even 10%, it will sit. For some reason, new to the business real estate agents, and there are a lot of new agents, who were born into this over asking atmosphere, are reluctant or resistant to making an offer under list price. They will tell their clients to wait until you reduce the price and have accumulated the deadly days on market double digit number and go for the kill. While you wait for “someone to make and offer and I’ll negotiate” those interested buyers, confident there will not be any competition, wait for your price reduction and that best offer never comes.
By pricing at true market value or slightly under, depending on the quality and desirability of your home, you encourage offers by creating urgency. “If I don’t offer, someone else will!” and you create a climate for the multiple offers that guarantee you receive the true market value for your home and the offers will come quickly.
Keep in mind, if you don’t get an offer you like, you are not obligated to sell. Let me repeat that. Many times I hear, “What if I get a low offer, do I have to take it?” No, no, no. You are the boss. If the strategy does not create a winning offer ,you can decline any subpar offer, BUT, it is cause to evaluate the list price.
Another pitfall is thinking that your Realtor is acting in self interest in setting the sales price. “Well, you just want a quick sale”. However, a good, trustworthy Realtor who is successful, wants you to be successful because their reputation depends on it. Pick someone your trust and take their advice.
This competitive market does not mean everything sells. The smart seller prepares carefully, follows a strategy to engage buyers, and prices their home effectively.
