Pricing Home To Sell
Every home owner wants to sell their property at the highest possible price. It can be hard to achieve such results if the home owner does not have the necessary experience and do not understand how the market works.
In this current economic climate and market, the challenge is even greater for the seller to achieve a premium for their property.
In my years of dealing in the property industry, I’ve come to realise there are 3 myths commonly accepted as truth among many home owners when it comes to pricing their property for sale.
And believing in these myths is a major reason why so many sellers fail to get the best out of their property sale and in some cases, the property can be ‘stuck’ out there for months without any takers… while the market continues to turn against the sellers.
You really do not want to make the mistake by believing in any of them.
(Disclaimer: This article will only make sense if you are a genuine seller with a valid motivation to sell off your property at the best possible price the market can bring you.)
- If I Just Wait Longer, A Better Offer Will Come Along
It is a common assumption among many sellers that if they wait long enough, the right offer will appear.
Often, when the market is unable to achieve the unrealistic price of the seller, they will self-justify by saying
“I am actually not in a hurry to sell”
“I can wait for a better offer, there is no hurry”
“I am not desperate to sell”
It is very common for buyers to find out how long your property has been on the market. The general assumption is that the longer the property has been in the market left unsold, the higher likelihood that the property either has something wrong with it or that you are slapping too high a price tag on it.
Either reason tends to put off any genuine buyer who may be looking for a property in your location. When that happens, you are likely to experience a situation whereby buyers and agents will skip your property in their search or you may be conducting numerous viewings without a single offer at all.
- If The Offer Comes Too Quickly, I Must Have Priced My Property Too Low
That my friend, cannot be further away from the truth.
Buyers being buyers would have done their due diligence on the property prices in the area. Genuine buyers would have also spent weeks or months scanning through all the possible properties they could buy.
If your property is priced correctly, it is not uncommon to receive multiple offers within a short period of time as the buyers would be able to recognise a property that is priced competitively.
Obviously, you would not want to price your property lower than what it can sell for.
The key here would be to price the property correctly such that you can get buyers making offers without leaving money on the table!
- I Need To Price The Property Much Higher To Allow Room For Negotiation
This is another very common situation that I encounter when talking to sellers.
In order for them to achieve a sales price of $X, they would need to price it much higher so that when the buyer negotiates, it will eventually end up at the amount that they initially wanted.
This will backfire on you.
When your property is priced too high, you will be seen as an unrealistic seller. As a result, you may miss out on a lot of genuine buyers who may decide to pass on your property altogether.
“Why waste my precious afternoon seeing a property whereby the dude isn’t even serious to sell?”
As someone who is genuinely wanting to sell your property, it is in your best interest to expose the property to every single eligible buyer out there who may be looking for a home in your area. To encourage competition amongst interested buyers and get the best price for your property.
The best course of action is to research on what price would be competitive for your property and decide on the minimum offer you will accept. Then list the property at slightly higher than the lowest acceptable price. If you are priced correctly, a sincere and genuine buyer who is interested in your property will come with an offer that is close to what you are asking for.
Last but not least, if you find all the above a tad too overwhelming on top of your already busy work schedule, you can consider interviewing and selecting a competent real estate salesperson who has the experience and know-how to assist you in the selling of your property.
All the best of luck to selling your property!
This article is contributed by Kevin Yeo.