3 Costly Pricing Mistakes to Avoid When Selling Your Home
Want to sell your home for the most money the market will bear faster than your competition? Avoid making these 3 costly pricing mistakes when selling your home.
OVERPRICING YOUR HOME
Overpricing a home is THE costliest mistake a home seller can make.
Putting your home on the market at a price that reflects what you want and not what the market will bear costs you time and money.
The longer your home stays on the market, the greater your chances of getting less for it. Offers that come in after the home has been on the market for months are ALMOST ALWAYS lower than offers received in the first 45-60 days.
A large portion of your success in selling your home for more faster than your competition comes from pricing your home at "the sweet spot", the list price that generates enough buyer showings to generate offers for your home.
USING THE WRONG DATA
The home sale market is a hyper-local phenomenon. Using city, county, and zip code-level data or relying on Zillow's automated algorithm to decide on a list price are recipes for failure.
The only way to arrive at your home's sweet spot is by gathering and analyzing clean, granular data including:
1. The sale price of similar homes in YOUR NEIGHBORHOOD that sold in the last 90-180 days (aka Comparable Sales).
2. The list price of similar homes in YOUR NEIGHBORHOOD that have gone under contract in the last 45-60 days (aka Pending Listings).
3. The list price of similar homes in YOUR NEIGHBORHOOD actively listed for sale (aka Your Competition).
4. The list price of similar homes in YOUR NEIGHBORHOOD that were actively listed for sale, but failed to sell (aka Expired and Canceled Listings).
5. The absorption rate for all homes in YOUR NEIGHBORHOOD and homes in your price range (Supply and Demand).
APPLYING THE PRICE/SQ FT APPROACH
Applying the price-per-square-foot approach to arrive at a home's list price is another mistake lots of homeowners make.
The price-per-square-foot approach does not account for many things. Architectural styles differ. Floor plan functionality differs. Finishes and condition differ. Lot sizes and shapes differ. Amenities and extra features differ. And so on and so on.
Also, not all square feet are created equally. You would probably value an additional 200 square feet of space in your dining room. But what if those 200 square feet went to additional closet and storage space throughout the home instead of the dining room nobody uses?
In the eyes of most buyers, the additional storage space adds more value to the home than a larger dining room.
The price-per-square-foot approach doesn't account for that.
Can this approach work in condominiums and cookie-cutter communities where architectural styles, floor plans, finishes, etc. are more homogenous? Maybe.
However, the price-per-square-foot approach is best saved for analyzing overall, long-term trends in an area or neighborhood. It works well for identifying macro trends, but is generally not a good idea for micro-pricing strategies.
WORRIED ABOUT "LEAVING MONEY ON THE TABLE" WHEN SELLING YOUR HOME?
What your home needs is exposure - When you work with us to sell, your home will be seen, discovered, and understood in the marketplace.
With the proven Maven Marketing Plan, your home will have high-definition photography, interactive 3D tours, professional short films, StoryBrand copywriting, targeted social media advertising, and more.
When you match the right images with the right words and showcase them to the right people in the right places, more qualified buyers discover your home and you sell for more faster.