One of the biggest mistakes you can make when listing your home for sale is to chase the highest selling price. The appeal of a high profit can tempt you to go for the real estate agent who gives you the highest property appraisal, leading to your home being quoted at a price that is unrealistic and unappealing to buyers. Read on to learn the dangers of going after an unrealistically high quoted selling price and how you can ensure your home is priced correctly.
The dangers
For starters, a house with a selling price that is unrealistically high will often be overlooked by many buyers, leaving your property sitting in the market until the listing expires. This can result in frustrations especially if you were chasing a quick return. You may also have to continue making mortgage payments on the house and have to spend a great deal of money to maintain the property for inspections by buyers in the future. Moreover, you may have to start looking for a new real estate agent in the market, costing you valuable time and money.
Another pitfall of pricing a home incorrectly is that you may have to lower the price after the listing expires so as to attract buyers. A lowered price on a home that has been on the market for a long time can sometimes raise suspicions with buyers that something is wrong with the property, leading to less bids. Eventually, you may have to succumb to a low bid from a buyer after your home has been on the market for too long, leading to a significant financial hit on your part.
Pricing your property correctly
To avoid the above pitfalls, you need to find a real estate agent to help you come up with an accurate home appraisal. This essentially results in a precise indication of the value of your home which will allow you to look at what other similar properties in your area have sold for.
From this assessment, your agent can then perform a thorough market analysis to come up with a selling price that will be competitive and attractive to buyers. It also helps to find an agent with intimate knowledge of your specific market as well as other factors influencing the selling price of homes such as supply and demand in the your area and the real estate market as a whole.
If your home has been listed for a long period and hasn't yet been sold, you should consider a new pricing strategy to make it competitive in the market and hopefully attract new buyers.
Share24 October 2016
After I decided to buy a new home, I realized that I probably needed to prioritize the things on my wish list. Since I am not wealthy, I realized that I probably couldn't get everything that I wanted out of a single home--at least, not this time around. Fortunately, I worked with an incredible real estate agent who helped me to figure out which type of property would pay off in the end. Finding a home took a lot of time, but I am really pleased that I found the right one. This blog is all about learning to prioritize your home hunting wish list so that you can have the home and financial situation of your dreams.
