9 DEADLY MISTAKES HOME SELLERS MAKE – #7
DEADLY MISTAKES HOME SELLERS MAKE – #7
Selling the most expensive asset that most families own is serious business, not something to be taken lightly. It can be a highly stressful process and costly mistakes are easy to make. In order to net the most from the sale it takes careful planning and some work on the seller’s part.
Based on our years of first-hand experience, we have compiled a list of the 9 Deadly Mistakes Home Sellers Make to help home sellers avoid them. As the old proverb says, “forewarned is forearmed.”
A copy of the list is available at no charge to anyone who requests one by e-mail. Send your request to: Mike@SellYourVilla.com
DEADLY MISTAKE #7 –
Not knowing how to price your home to sell.
For most homeowners, this is probably the most difficult part of the selling process. The key to selling a home, or anything else, is to price it properly. Any home, even one in terrible condition, will sell if a buyer perceives that there is value in the price that they are paying. This is one of several areas where the assistance of a skilled Realtor can pay dividends.
One thing to keep in mind is that a raising, or falling, tide floats all boats. It makes little difference at which stage the market is when you make a decision to sell. If you have to take a hit on price when you sell the seller of the home that you intend to buy will have to take that same hit. If you rake in a nice profit when you sell your home, you are going to have to pay a high price on the home that you buy.
Over the past few years market prices have declined. It is difficult for many homeowners to accept the drop in the actual market value of their home. Too may have their hearts and minds tied up in 2005 pricing (the height of the market). Sellers frequently do not take the time to look at their competition when considering pricing their home. They do not look at it from the buyer’s side. Most buyers look at anywhere from five to fifty homes before they find the one they want. Before they make that offer, they have a good idea what the market values are. Their agent will do a market analysis for them before they make a decision, making them even better prepared. If your asking price is too high they won’t bother making an offer because they will be confident that you are not in tune with current market prices and will not be willing to negotiate.
Some sellers want to start high, thinking that they can always drop their price if they don’t get any offers. This is flawed thinking. The will have lost many opportunities because buyers will pass their home up in favor of well priced homes. Once your listing becomes “stale,” buyer interest wanes. Price reductions, chasing the market down usually end up with a no sale situation.
Pricing a home too low is also a bad idea, unless you can create a buyer bidding situation in which the winning bed is well above your original asking price. This is difficult to accomplish and usually works out very well for the seller when it happens. The danger is that if the final offer price is too high the home will not appraise and the buyer will not be able to get financing to complete the purchase. Lenders are VERY CAUTIOUS right now and many deals fall apart because of the appraisal.
When prices are raising or falling quickly pricing becomes more difficult. You have to depend even more on your Realtor to get the pricing right.
It makes no difference if you are in El Dorado Hills, Folsom, Cameron Park or any other city or town in California, or in any other state. The same rules apply. If you are considering selling, contact your Realtor today!
If you have any questions or want to put your home on the market call today: (916) 337-0658. You will get a no-cost market evaluation and suggestions on how best to maximize your selling net!