What are the top three pricing mistakes sellers make in our market?
1. Only looking at the sold comparable sales. While it’s true that sold data plays the largest role in determining your home’s worth, active and pending inventory are two additional factors that also play a significant role in how long it will take for your home to sell, what it’s worth, what the best strategy to sell it would be, etc.
2. Reducing the price either too quickly or too slowly once on the market. In our current market—which is largely a seller’s market, depending on which price point you’re in—agents and sellers get flustered when their home doesn’t sell in 30 to 45 days, and they subsequently lower the home’s price.
While that may be the right strategy, you first have to look at the average days on market for your price point in your location. If you’re in an area like Graham or Olympia and you’re in the $500,000 price point, homes aren’t selling in 20 days—they’re selling in 60 days, or 90 days, or even longer. That price reduction, then, may not have been worthwhile.
Conversely, you may have tons of feedback from potential showings telling you that your home is listed too high. You may not have any showings at all. Those are both key indicators that you should consider reducing your home’s price as fast as possible to get the market’s attention.
3. Listing too high and leaving room to negotiate down. In our current market (which, again, is a seller’s market), buyers aren’t even looking at homes they feel are overpriced because they assume it will sell at what it’s listed for. Many of them won’t even come take a look at your home in the first place.
Homes like that will likely grow stale on the market and endure many price reductions. They may sell eventually, but the point is if you list too high at the outset, you lose the most engaged, active buyers in the marketplace. Always be realistic with your home’s listing price—that will determine how quickly your home sells and for how much.
If you have any further questions about listing mistakes or you’re thinking of buying or selling a home in our market, don’t hesitate to give me a call or send me an email. I’d love to hear from you.