The Number One Mistake Sellers Are Making: Overpricing Their House
In today's housing market, many sellers make a critical mistake: overpricing their houses. This standard error can lead to a home sitting on the market for a long time without any offers. When that happens, the homeowner may drop the asking price to re-ignite buyer interest.
Data from realtor.com shows the number of homeowners realizing this mistake and doing a price reduction is climbing (see graph below):
Data from realtor.com shows the number of homeowners realizing this mistake and doing a price reduction is climbing (see graph below):
If you're considering moving, here's what you need to know. The best way to avoid making a costly mistake is to work with a trusted real estate agent to find the right price. Here's a look at what's at stake if you don't.
Not Paying Attention to Current Market Conditions
Understanding current market conditions is critical to accurate pricing. You don't want to set your asking price based on what happened during the pandemic. The market has moderated a lot since then, so aligning your price with today's reality is far better.
The Aaronson Group stays updated on market trends and how they impact your house's pricing strategy.
Pricing it Based on What You Want to Make (not what it's worth)
Another area for improvement is pricing it based on what you want to make in the sale, and not necessarily current market value. You may see other homes in your neighborhood selling for top dollar, and assume yours can do the same. However, you may not consider size, condition, and feature differences. For example, another house is waterfront or has a finished basement. To sum it up, Bankrate explains:
"How do you find that sweet spot of pricing for profit but not overpricing? Your agent's (The Aaronson Group) expertise can be precious here. A knowledgeable agent will understand the fair market value in your area, how much your house is worth, and how much you might reasonably expect to get for it in the current market."
"How do you find that sweet spot of pricing for profit but not overpricing? Your agent's (The Aaronson Group) expertise can be precious here. A knowledgeable agent will understand the fair market value in your area, how much your house is worth, and how much you might reasonably expect to get for it in the current market."
The Aaronson Group will perform a comparative market analysis (CMA) to compare your house with truly similar properties and accurately assess its price.
Pricing is High to Leave Room for Negotiation
Another common yet misguided strategy is to price your house high on purpose so you have more room to negotiate down during the sale. But this can backfire. A price that seems too high often deters potential buyers from even considering the home. So, you'll turn buyers away rather than leaving room for negotiation. U.S. News real estate explains:
"You want to sell your house for top dollar, but be realistic about the property's value and how buyers will see it. If you've overpriced your home, chances are you'll eventually need to lower the number, but the peak period of activity that a new listing experiences is already gone." The Aaronson Group can help you set a fair price that attracts buyers and encourages more competitive offers.
Bottom Line
Overpricing your home can have serious consequences. The Aaronson Group is comprised of knowledgeable real estate agents who bring an objective perspective, in-depth market knowledge, and a strategic approach to pricing.
Connect with us to avoid making a pricing mistake that'll cost you. Call: 949-388-5194 or email info@previewochomes.com
