We have all watched TV renovation shows that capture the tension of a house sale when the seller decides to get greedy and ignore their agent’s assessment of market value.
Demanding an unrealistic price – no matter how much you need the money for your life goals – will lose you buyers and potentially cost thousands of dollars in additional mortgage interest, or the opportunity of moving into a new dream home.
No element of selling your home is more important than getting the pricing right and being prepared to meet the market in a realistic negotiation.
If you get the price wrong, it won’t matter how good your agent is, how tidy you made the property, or the amount of money you sink into marketing, you will languish on the market.
A major influence on the outcome is understanding your own motivation to sell. You may wish to trade up, or downsize, so be careful you don’t compromise your legitimate desire for a change in your lifestyle by refusing to meet the market on price.
Selling a house in the digital age is very different from the old days of putting an advertisement in the local newspaper and seeing a picture of your property in the window of the real estate agent.
Back then, you could test the market. You could ask $1 million for your home and quietly take it off the market if there were no takers. The internet has changed all that. Once your property is listed, there is no turning back. So, you need to get it right quickly.
All the major property websites display the commercial history of a home and prospective buyers will be able to see how long your property has been on the market, or whether you have listed, de-listed and listed again.
The longer the “For Sale” has been out front, the more it encourages buyers to drive a hard bargain in the belief that you are becoming increasingly desperate for a sale. It may not be true, but perception trumps truth in the game of negotiation.
Before you place your property on the market, conduct your own research to establish what you believe the property might be worth. Seek the professional opinion of a variety of agents who are interested in marketing your home. Ask all of them to back up their estimations with research and look for the commonalities across that research to determine your own view.
Don’t make the mistake of searching a few homes and settling on a price range. The market is constantly moving and you remain vigilant through the sales cycle to make sure you understand the value of the property so you make the sale for the optimal price.
Tips on pricing
- Keep researching on pricing the entire time your home is on the market right through to the day of the sale
- Be prepared to meet the market
- Focus on your primary reason to sell – don’t subvert it for a few thousand dollars that will lose you the sale
- Get professional advice on market trends, pricing expectations for your property from your agent.
- Ask your agent to show you recent results of sales of similar properties in your area
- Don’t simply choose the agent who promises you the highest price – ensure they can back up their pricing with research and make sure you trust them.
- Understand that the longer your home is on the market, the greater the potential for it to lose value in the eyes of prospective buyers