Five (5) Fatal Mistakes When Pricing Your Home to Sell - Consumers Beware!


The Five (5) Fatal
Mistakes Home Sellers
Make When Pricing Their Home

  1. Sellers often price their home based on "need' rather than the market.

  2. Sellers use the 'wrong' properties for comparison when pricing.

  3. Sellers build in a 'negotiating cushion' and then have no one with which to negotiate.

  4. Sellers take advice from 'well meaning' but uninformed parties.

  5. Sellers allow positive emotions about their property to influence their pricing decisions.

It can be difficult for sellers to be objective about the value of their home. Often times sellers estimate high, yet some sellers have no idea how much their home has appreciated and have underestimated the value. Sellers would be wise to rely on a real estate professional for a realistic price assessment. The dynamic is changing in many real estate markets around the country. Sellers, in many cases, are no longer in the driver's seat. Keep this in mind when you select a list price for your home.

Comparable sales from a few months ago may be out of date for the current market. Even though your neighbor's home sold for an exceptional price, it may have been the only game in town at the time.

The chance that your home stays on the market longer, it creates a negative stigma. Buyers will have concerns and wonder what perhaps might be wrong with the home. In most cases, the only thing wrong is the price.

If you agree to lower the price you are now chasing the market. By doing so is the correct thing, however it can be fruitless if you reduce too little, too late. Meanwhile, more well-priced listings come on the market and sell. Pricing your home correctly the first time is key.

Seeking out a professional listing agent that will provide accurate sales in your immediate neighborhood with informative knowledge will lead you to great success in getting the best price for your home. Selecting A Listing Agent - Consumers be wise!

Inquire of the agent you are considering to provide you with a detailed marketing plan to let you know how he or she will accomplish the sale of your home. Consider using a listing agent that does market extensively on the Internet. Buyers are turning to the internet more and more now to find their dream home. It's very important to be sure that the agent you choose is up on the latest technology and offer the maximum exposure on the internet.

If you are looking into buying or selling a home in the Phoenix metropolitan area, hire a REALTOR® like myself, who wants to win your business. I invite you to contact me direct to assist you with all your real estate needs or questions!

I will be honored to share with you an educated idea of what your home's value is based on experience, local knowledge, and comparable actual sales in your neighborhood! To get a FREE no-obligation Home Evaluation specific to your needs be sure to contact me direct. If you have any general questions about buying or selling real estate with Help-U-Sell's marketing plan please don't hesitate to contact me.

If you are relocating to the Phoenix Metro area and need information about schools, employers, local taxes and financing? Be sure to Contact me for all of your relocation needs including:

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Please feel free to browse through some of the East Valley areas (click link) and be sure to let me know if I can be of assistance to you in all your real estate needs. Fantastic lenders available upon request to help you get pre-qualified.

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Please visit CandaceRobinson.com for all your relocation needs!

Candace Robinson REALTOR® - 480-202-3558
HomeSmart International
1745 S. Alma School Rd. Ste 115 - Mesa, Arizona 85210

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Posted Monday Dec 10

Candace - Simply outstanding. So much useful information and so well layed out. Great post!

(12/10/07 07:49AM) — Lenn Harley

My question is always, when a home owner insists on a list price that is significantly over market, why does the listing agent still take it??  Why does the next one in the door recommend a higher price?? 

As long as listing agents continue to take and list and broadcast listings at prices no one will pay, they are complicit in the stagnant market. 

When a home has been on the market for over 100 days, you'd think someone would get a clue. 

Tom - Thank you. I appreciate your comments indeed!!

Lenn - I totally understand your concerns. Our market here has changed drastically from month to month and currently I have some listings where we are chasing the market. It's so important for the consumers to see the black and white, the facts that are presented to them and allow the professionals to guide them. To trust and have faith that the list price is crucial to a successful sale. Often times the list price, if priced correctly can even generate multiple buyers/offers which can generate a higher sales price. Go figure! Thank you for your questions, comments as always!

Great presentation as always.      I think Lenn is giving the public too much credit I've seen it go to 200 and more days and still no clue.     Waste of time.

 

Once again, looks great Candace.  I can't wait to get my new toy so we can play!  I will be fun to learn these things.

 

Dez - I agree, some listing agents just amaze me that let it go that long without some price adjustments. I have a rule of thumb generally, if we don't get enough traffic with the current list price within thirty (30) days then we go back to the drawing board and adjust, adjust, adjust!! Some sellers are stuck with yesterdays news and really need to listen to the agent advice, the obvious to get the home in top shape and best possible list price to start!!

Doreen - I am so ready for you to get your new tablet!! That will most likely make me want one...no doubt. When do you hope to get your tablet bought? I am here whenever you are ready to tinker on it!!

Candace:  You nailed it with this one! These are the big 'holes' that sellers fall into...and it is expecially important to beware of these pitfalls in this type of market. Blessings!!

Elizabeth - Thank you. It's so important anymore that the consumers totally understand that with the inventory high and new construction their biggest competition in some markets that they need to be more prepared now than ever to have the best home in the neighborhood, that includes the best price too! Thanks for your comments, as always! GBY.

Good stuff Candace and very well written and thought out as usual.

George - Thank you and thanks for stopping by!! Hope all is well.

Very nice presentation, Candace.  I especially appreciate your point about weak price reductions...  it's often such a difficult point to get across.

Candace-This is absolutely perfect!  I wish for one moment I could figure out the way you post these blogs so beautifully. You are the queen of blogging my friend.

Sandi - Yes- I agree about helping our sellers and prospective sellers that pricing correctly is the real key behind a successful sale! Chasing the market is not where we want to be at all. Thank you for stopping by, it's been awhile and I miss your cheery self! Hope you are well and I wish you a very merry holiday season!

Julie - Oh thank you my friend. I do enjoy a good visual and I would love to share my tips and tricks with you. Thank you for your continued support and as always your sweet spirit in my little corner! Glad to see you are feeling better, be safe and GBY!

(12/11/07 07:06AM) — Margaret Woda, Maryland REALTOR

Now that's an attention-grabbing title, Candace! And a good article, on top of that. You are "right on" with your 5 point.  #1 is probably the thing I run into most often.

(12/11/07 10:02AM) — Latonia Parks

I learned this the hard way and regret it to this day.

Margaret - Thanks a million! I thought this might get a bit of attention with the title. Thanks for stopping by.

Latonia - Sorry to hear, care to share?

Candace- I agree with Lenn. If agents would get a life and refuse to take over priced listings the sellers would have no choice but to start at a reasonable price. Great post, Candace. This series is very good. Katerina

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