A lot of sellers have the misconception that it’s a good idea to price their homes according to the listings they see of similar properties. But these sellers aren’t privy to the actual selling price of the property. With expectations that are higher than actual market value, they can end up taking themselves completely out of the sales game.
Overinflating the price of your property can lose you a significant number of buyers from the get-go. In the end, your house can end up being benched, going stale on the market as your potential buyers wonder what’s wrong with it.
Most listing prices are not the actual market value
A lot of sellers misinterpret the facts. They look at their neighbour’s house that is active on the market and the one down the street. But these figures tell you only one thing: what the owners want for their house. They aren’t necessarily in the right ballpark to attract buyers.
To accurately find out if you are pricing your home correctly you need to get in touch with a real estate broker. They have the correct figures and the experience to accurately find out which homes sold for what prices in your area. These facts will help when you negotiate with a prospect because you’ll know where you stand.
An effective real estate broker can be a helpful coach, presenting you with a sold analysis of the market in your neighbourhood. In a perfect world, you’ll list the property a bit higher than the recommended value. This will attract the largest number of buyers without undercutting the value of the home.
Properly priced properties sell much more successfully
Most buyers and brokers search within their price point. If you are slightly over, you won’t show up at all in their search results. Even if you do, many buyers don’t want to insult a seller with a low price, so most won’t make an offer at all.
Having a property sit on the market will cost you. A couple of months and the mortgage, heating costs, taxes, and other expenses add up.
But the biggest cost is the mindset of the buyer. When a property doesn’t sell, buyers start to wonder why.
When you play it right and price properly, you are much more likely to sell close to the asking price or even create a buzz, attracting multiple offers and possibly selling for more than you asked — particularly in a strong seller’s market like the one we are in now.
Buyers these days are very savvy. Either through their web browsing, property visits, or with the help of a real estate broker, people understand the market value of properties in their ideal neighbourhoods.
So when you are selling a property, it’s well worth the time and money to get professional help with your pricing strategy and stay in the game.
Jennifer Lynn Walker has specialized in buying and selling residential and multiplex properties since 2003. She’s also the founder of Montreal Real Estate Investor’s Group with 1,300+ members and Jolly Green Homes, a resource-series devoted to helping homeowners build an eco-friendly life. For more, visit www.montreal-realestate.ca