It is an obvious fact that homeowners who put their home on the market are looking for the best possible price they can get.
A key element that will sell the home is the asking price, so it is important to have a sound pricing strategy in place.
Home buyers have a great deal of knowledge at their disposal and most have a good idea of what a fair price on a home would be.
Sellers need to price their home accordingly, in order to find the perfect buyer but too many sellers make some of these 5 mistakes instead of avoiding them:
Mistake #1 – Overpricing
The most common mistake that sellers make is to inflate their asking price so that “there is room for negotiation”.
Emotional attachment plays a huge roll in this decision as many homeowners feel that their house is the best one in the neighborhood. Sellers need to remember, however, that they should appeal to the value that the buyer sees.
An overinflated price might chase strong potential buyers and the result is that the asking price might need to be lowered a number of times, playing catchup with the market.
Not only will the house be sitting on the market longer, it’ll very likely sell at a price lower than what it would have initially if it were priced correctly.
Mistake #2 – Disregarding the recent home sale prices
There is often a difference between the price the home lists for and the actual selling price.
In order to arrive at a realistic asking price, one should not look at the listing prices of other homes in the area, but the actual price they were sold at.
An experienced real estate professional will have access to this type of information and they will be able to provide the necessary guidance to the sellers of the home.
This way, a realistic asking price can be set that reflects the true market value of the home.
Mistake #3 – Refusing to negotiation
The fastest way to kill a deal is to reject the idea of negotiating on the asking price of the property.
A seller might be less or more inclined to negotiate, depending on the circumstances. This will be largely influenced by how quickly they want to sell and how much money they would need to get out of the sale.
Refusing to negotiate an offer might lead to a very long and tedious process before the house is actually sold.
Sellers need to decide what is more important: keeping the house on the market for a long time and receiving the desired offer, or selling as quickly as possible whilst making a few concessions.
Mistake #4 – Not considering online search parameters
More than 90% of all home buyers will conduct an online search before looking anywhere else. This is extremely important to consider, especially when setting an asking price.
All online property search portals will require the potential buyers to enter a price range before they start looking.
So, if the asking price is R755,000 for example, it won’t show up in a search between R700,000 and R750,000. By listing the property at R750,000, there will be a greater chance of capturing potential buyers in the ranges above and below the asking price.
The final decision remains that of the seller, but an online portal might just guide you along the right path.
Mistake #5 – Being over-creative with price
Choosing a round number is easier for all parties involved. Really!
There may be some aspects of the home that could lead the seller to list at an unusual asking price of like R754,388. This might divert the buyer’s attention from the actual property and to the seller’s intentions.
It is far better to stick to simple figures in order to display transparency and honesty and leave the creativity for when you are marketing the home.