Property not selling? Avoid these pricing mistakes to ensure it gets sold quickly
WITH THE property market beginning to show signs of a recovery, it is more important than ever to ensure your home is correctly priced.
Jenny Rushin, property finance manager at ooba, says a property listed at the right price will give sellers the greatest chance of attracting buyers.
“A lot of properties have been for sale for months and may continue to sit despite the predicted recovery as they are overpriced,” she says.
Here are ooba’s common valuation errors to avoid:
Skipping the research. Don’t put your property on for what you think it is worth or even what prices are listed for in your area. Instead, ensure you have an expert agent look at the recent sales of homes in your area that are similar to yours. A comparative market analysis will give a much more realistic idea of what your home is worth.
An inflated price will scare away potential buyers.
Getting emotional. It’s natural to become emotionally attached to your home, but buyers are looking for sound investments and are likely to view your home dispassionately; they simply won’t pay extra for your sentimental attachment. It’s best to stay objective by looking at the statistics of actual comparable sales and remind yourself that you are involved in a business deal. Remem- ber: don’t take low offers personally. It could be the start of a negotiation that ends in a sale.
Going with the first agent may not be the right thing to do. Make sure you shop around for the best deal; it is always worth getting a valuation from a few different agents in your area and asking them to back up their valuations with comparable sales data. You can also consult professional property valuers.
Pricing too high from the start is a mistake. Agents will tell you that the first couple of weeks on the market are the most crucial.
If your home enters the market overpriced, many buyers will overlook it from the start because it will be out of their range and knowledgeable buyers, who have been looking around for a while, have a good sense of the suitable pricing.
By the time you reduce the price to fair market value, many potential buyers will have already found something else.
Other buyers may initially be interested in your new low price, but they’ll also see that your home has been on the market for some time. And that could lead them to believe there is something wrong with the property or think that you must be desperate and willing to accept a very low offer. Conversely, beware of under pricing which will have a detrimental effect on the home owner’s personal wealth.
Chasing the market is another problem. If you list your home too high to begin with, you may find yourself making incremental price drops but never quite catching up with the market. And when a home has had several price reductions, buyers may view it as stale.
It’s best to work with your agent to re-evaluate market conditions and determine the fair market value of your home before you put up the For Sale boards.