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How Do You Know A Property is Priced too High?
Selling your home can be an adventure. You’re about to embark on opening up a new chapter of your life when you sell a property you love and find another you’re ready to move in and make memories. While the process is exciting, you should avoid these mistakes when selling a home. This includes ensuring your home is appropriately priced. How can you ensure that?
Here are some ways to determine if your home is priced too high to sell.
You’re not generating interest
When you first list your home, you are probably elated that your home will be sold soon, and you’ll be on your way to a new home. Your realtor is likely advertising your property on social media, print advertising, and on their website.
If your home isn’t priced correctly, you can spend a lot of time and energy on marketing, but it won’t generate much of a response. If your home has been on the market for several weeks and you’re not booking any showings, you may need to re-evaluate your listing price.
Your online listing isn’t getting much traffic
More than 90% of buyers these days start their home search online. That means that your real estate agent will need to be social media savvy. There are many different avenues that online advertising can take, but posting your home and hoping it gets a response is not one of them.
A realtor that is well-versed in digital marketing will know how to elicit a reaction from their following and reach your ideal audience. If they’re doing everything right and you’re still not getting any interest, you may be overpriced.
Your home is priced higher than your neighbours
If your home is priced significantly higher than other homes on your block, you may want to re-evaluate your pricing strategy. It can be frustrating to watch your neighbours sell their homes with ease while yours sits with little interest.
There are a few things to consider before jumping to the conclusion that you’re overpriced.
- Is the style of home different?
- Upgrades and amenities?
- Lot size and location?
- New hardware?
These aspects can influence the sale of a home. Still, if you’re seeing many others selling their homes quickly, you may want to consider your price compared to theirs.
Your real estate agent suggested you list at the highest price
Hiring the right real estate agent may require some research. You want someone you mesh well with, who has your best interest in mind. You don’t want a realtor who will automatically suggest you try to get the absolute most money for your home, at risk of overpricing.
You may want to hire someone who is your community’s neighbourhood expert, a referral from a friend or family member, or someone you found with fantastic reviews. You also want to ensure you’re getting a second or third opinion.
If you ask three separate realtors what you should price your home at, and one of them provides you with a price that is more than the other two, you need to know how they determined that number. An experienced realtor will be able to come up with the right price, so your home sells quickly.
Your open houses have few visitors
Most homes don’t sell directly because of an open house, but they are crucial to the buying and selling process. An open house allows buyers to see the home without the pressure of a private showing, and if they love what they see, they can book that as well.
If your open house is four hours long and you only get one or even zero visitors, you may want to re-evaluate. Part of the issue could be marketing efforts, or it could be the price. If a home is priced way higher than other houses in the area, buyers searching within a budget may pass on your home because it’s out of their price range.
You’re receiving low ball offers
While many overpriced homes don’t typically receive many offers if you are receiving low ball offers, that could be a sign you’re overpriced. Sometimes this is a sign that a buyer wants to engage in negotiation. Still, if the only offers you’re receiving are significantly lower than your listing price, that is something to consider.
You’ve made renovations that are expensive and want to recoup costs
The market is likely different from when you initially purchased your home and then put money into upgrading and renovating your property. For homes to increase in value, they need constant upgrades and maintenance. Once you put in all that time, effort, and money, you also have an emotional investment in your beautiful home, and you might believe it’s worth more than it is.
Suppose you upgraded your kitchen or landscaped your yard while installing a pool. That doesn’t mean that the value of your home has increased directly by the value paid for those additions and updates, especially if you’re neglecting to replace other more pressing items in the home.
Don’t price your home based on what you initially paid or how much money you’ve put into upgrading it, because you may end up overpriced.
You haven’t done your research on the current market
Your realtor is your best resource when it comes to correctly placing a price on your home, but you should always do your research such as using real estate calculators. Knowing the current real estate market trends, your neighbourhood, and what similar homes are selling for at the time are all tools you can use to your advantage.
If your realtor suggests an unusually high price, you are armed with the knowledge to question that, rather than just going along with whatever they suggest. Please don’t use a computer-generated estimator, as they are almost always wrong, but do compare your property to others being listed, or recently sold.
You’re not getting good buyer feedback
An excellent real estate agent will always request some feedback from those who visit open houses or private showings. Even asking other realtors about the home and the price will be valuable feedback for you to consider.
Feedback is a significant component of the successful sale of your home, whether it’s about the price or the staging of the house. Although everyone has their tastes, if you’re receiving a lot of feedback on your paint colours or fixtures, you may want to consider upgrading them to leave a better impression on buyers. Staging a home properly can be daunting, but many maintenance tips can help you do it right.
Make sure the price is right
Overpricing your home can be damaging and leave you with less money in your pocket than you expected after the sale of your home. A house priced right will sell quickly, and depending on your situation, that might be precisely what you’re looking to achieve. You certainly don’t want your home sitting on the market for too long if you’ve already found a new home you wish to purchase.
Selling your home doesn’t have to be stressful, and by following these guidelines, you can avoid overpricing your home and suffering the consequences. Once your home is sold, and you’re ready to move into your dream home, follow these excellent moving tips for relocating in 2020.
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If you enjoyed this post and have time to spare, why not check out these related posts and dive deeper down the rabbit hole that is real estate.
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