A lot of people go off those automated valuations like on Zillow to determine what their home is worth. How does a home seller decide what price to set when selling their home?
1. Pricing a home appropriately can mean the difference between a home seller getting TOP dollars for the home or the home sitting on the market for a longer than normal period of time.
Here is why:
a. Price too high – no or few showings – no offers
b. Price too low – buyers don’t offer enough
c. Price too high and slowly walk the price down
a. National statistics – Net LESS Money
2. What About Pricing according to those automated valuations?
a. Not accurate
b. Average homes around you
c. They Do not know YOUR improvements
Pricing too low:
• Most buyers assume you will accept that number
• Or if they need work…EVER LOWER! BLA Story
• Agents suggesting a PRICE TOO LOW may not have YOUR best interest in mind
• NEW SLIDE
• Other Agents Said it was worth UNDER $500K
• I sold it for $575K
• If Sellers took the other agent’s advice – cost $75000!
Did you want to know how to price your home to get the most amount of money? Doesn’t that mean you price a home with some negotiating room built-in?
3. No and here is why…
a. Buyers are often having to bid OVER asking in most cases to get a house
b. If you price TOO HIGH they may fear making an offer at all
c. Or worse yet, it will sit on the market with NO SALE
4. Buyers are Used to HAVING TO MAKE STRONG OFFERS
IF YOU PRICE TOO HIGH
THEY MAY NOT MAKE AN OFFER AT ALL!
5. Pricing a Home REALISTICALLY vs OPTIMISTICALLY will always command top dollar
• Careful evaluation of:
– Similar Recent Sales
> Compare Apples to Apples
– Current Similar Competition
> Put your Buyers Hat On
Example: By Pricing a home REALISTICALLY, IT CAUSED THE BUYER TO MAKE THEIR BEST OFFERS!
Just put one of my listings UC for $82,500 OVER ASKING PRICE!
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