4 TIPS on PRICING YOUR HOME TO SELL
In today’s housing market here in Alamogordo and Otero County, one of the most important aspects of selling your home quickly….is pricing it right from the start….aka…Price Your Home to Sell.
As of the end of September 2018, there were approximately 6.87 months of home supply on the market. Meaning it would take almost 7 months for all the homes in Alamogordo and Otero County to sell, with no new homes being listed. The National Average is 4.3 months supply.
What does this mean for Alamogordo and Otero County??….It means that pricing your home right from the start is CRUCIAL in getting the home sold. We are in a buyers market here locally, which means buyers have the ability to pick and choose which houses to consider in purchasing.
Buyers can quickly and easily look up recent sales in your neighborhood, compare prices and get a market value for your home with a few clicks. If your home is priced above similar homes, buyers won’t likely even consider touring your property.
While studying the market, seeing some homes sell and others just sit on the market for months on end, I have seen 4 common mistakes when it comes to pricing. Check them out below:
DON’T OVERPRICE YOUR HOME
With the advent Zillow, Trulia, Realtor.com and other real estate search based platforms, buyer’s today are aware of anything and everything on the market. Making it vitally important that you keep this in-mind when you price your home for sale. Pricing your home higher than the rest of the homes on the market will only result in fewer or no showings. And create more stress for you during the sale process.
Studies show that over pricing your home can actually end up costing you thousands of dollars. You’ll likely have to make price adjustments and by the time your home attracts the attention of buyers, it’ll be too late to get market value for your home. See, the longer a home sits on the market and doesn’t sell, the more it arouses buyer suspicion. This creates a negative stigma with buyers, causing them to avoid your home altogether. And that is the last thing you want to do when selling your home.
So if you want to sell your property quickly and for the best price possible, make sure you price your home to sell from the start. This will drive more activity and buyers to your home.
ALWAYS PRICE IN ROUND NUMBERS
The best way to price your home to sell is by using a round number. For example, $150,000……vs…….$149,900.
While you may think it gives a buyer the impression that they are paying less, it’s a strategy that may not necessarily result in the outcome you hope for.
In the modern age of internet searches for homes, most buyers and online platforms are structured to perform searches in round numbers. A typical buyer would likely search for homes priced between $150,000 to $175,000. So, if you’re priced at $149,900 it’s possible that your home won’t come up in that particular buyers online search. So rather than eliminate potential buyers, keep it simple and stick to round numbers.
Obviously, this doesn’t hold true to all buyer searches….but if I’m selling my home, I want to ensure that my house shows up in as many buyers searches as possible. Therefore, I’ll stick to using a round number.
PAY ATTENTION TO YOUR LOCAL MARKET
While we all want our home to sell for the highest possible price possible….and sometimes, at a ridiculously high price…..we have to remember that the price is set by the market. Not by the Seller. So it is important to pay attention to your local market and price your home to sell.
Your home is only worth what a buyer is willing to pay today. It doesn’t matter what a buyer would’ve paid 2 years ago and it doesn’t matter what they would pay 12 months from now. It’s all about what a buyer will pay today.
That said, you have to pay attention to your local market and neighborhood. I cannot stress that enough. If you want to list your home for $15k more than your neighbors property that just sold with the same floor plan, you better make sure that the buyer demand warrants that price. If not, you’ll lose out on selling your home.
Additionally, make sure that you are teamed up with a real estate broker or agent that you trust. It is their job to know the current market and assess what a buyer would likely pay for your home. They do this on a daily basis and, trust me, they want to get your home sold. Not only does that mean they earn their commission, but it also means the possibility of future business from yourself and neighbors. So choose a broker or agent that you trust and rely on them to provide professional advise and knowledge about what your homes value is in today’s market.
WORK THE DEAL
Everyone wants to feel like they are getting a deal, especially when it comes to purchasing a home. Regardless of whether it’s a buyers market or sellers market.
Be sure that you remain open to negotiating with buyers who are willing to submit an offer on your home. Don’t become insulted by an offer simply because it is less than your asking price. Look at it as a buyer expressing interest in your home. Always respond.
Many people feel that negotiations only involve the price. And often times this is the most important deal point to buyers and sellers. But that doesn’t mean that there aren’t other deal points that would motivate a buyer to pay a higher price for your home. A good agent will always seek to find the motivation behind a prospective buyer. And, often times, price isn’t the only motivating factor for a buyer.
So be willing and open to negotiating with buyers that submit an offer on your home. They could very well be the one who buys your home.
If you’d like more information or to speak with me directly, please don’t hesitate to reach out….I’m always open to answering your questions.
You can reach me here.
Infographic courtesy of California Association of Realtors (www.car.org)
ABOUT THE AUTHOR
Nick is a husband, a real estate broker and investor, a friend, a foodie and lover of water (oceans/rivers/lakes). Born in Albuquerque, NM and raised in Alamogordo, NM he has a unique and interesting perspective on local real estate that he can’t wait to share with you. Nick resides in Alamogordo and enjoys getting to meet all the wonderful and vibrant people of Alamogordo and Otero County.