If your home has been listed for some time but hasn’t sold yet, it may be due to several different factors. Whatever the reason though, it always comes down to an error in the house’s price. It’s not uncommon in these cases for a new real estate agent to try to pick up the property.
Avoid Chasing the Highest Sale Price
It’s natural to dream of achieving a high profit when you are preparing to sell your home, but it’s important to remain realistic during the sale process. As you compare and select a real estate agent to work with, don’t automatically go for the one who gives you the highest property appraisal. Although the thought of more cash at the end of the transaction will certainly be appealing, this could be an unrealistic dream that ends up wasting your time and money. Chasing after an unrealistic, highest quoted sale price can be the worst mistake that a seller can make.
The True Price for your Property
You may have a certain ideal value in your head when it comes to your property, but that figure, as well as the one that the real estate agent gives you, is sadly not that important. Ultimately, what matters is what the buyer thinks.
To find out what a buyer is realistically likely to pay for your property, you need to take a look at what similar homes in your location have sold for. The next step is to adjust these numbers either up or down to reflect any differences in features or amenities – you should be able to get a rough guide of how much value is added (or subtracted) by looking at a broad range of sales in your area. In addition to assessing the local competition, the true price of your home will also depend on the supply and demand in your region, as well as the current state of the whole market.
Taking care of this extensive type of comparative market analysis will give you (and your real estate agent) a more accurate picture of the price range that buyers will be willing to offer. This is roughly the technique that a valuer uses to appraise properties, so it’s the most realistic type of analysis. Rather than choosing a single fixed price, look at the price range as a whole. No two appraisals will ever be the same, so you need to work with a range of estimates.
Pricing a Property too Low
The worst mistake that a seller can make is pricing the property too high, and contrary to common assumption, you can’t really price a property too low. If the property’s price has been low-balled, this isn’t really as much of a concern because the competing homes in your area will be priced higher and yours will get extra attention. This generally results in a higher number of offers, as well as higher quality offers and the end result will be a price that is closer to the true market value of the property. The real risk is setting the bar too high and choosing a real estate agent based on an unrealistic appraisals.
The Danger of a Failed Real Estate Sale
If you choose a real estate agent based on a high appraisal of the property, you run the risk of ending up with a home that is left sitting on the market until its listing expires. In most cases, this will take approximately three months, and is directly due to the inflated price. A real estate agent may inflate the price because they’re not familiar enough with the area or because they were just trying to get your business. Of course hiring a second real estate agent to try and sell your home is also fraught with risk. The agent may lower the price to try and attract offers without undertaking an accurate analysis to figure out how the house should actually be priced. A lowered price on a house that has already been on the market for a while is likely to have buyers becoming suspicious and thinking that something is wrong with the property. This could lead to decreased attention, a low turnout at open for inspections, and several more months passing without any sign of a sale.
Properties that are Unsold for Long-term Periods
After six months or more have passed, you may be in need of yet another real estate agent to try and sell your property. By this time, it’s most likely that you will have little faith in a good sale and with low morale you will be prone to taking an offer that is far below what your house is worth, because you are tired of having a house on the market. As the home was on the market for so long with a decreasing price, it probably appeared tainted to buyers even if there is absolutely nothing wrong with it.
Agents Specialising in Expired Listings
There are some real estate agents who specialise in expired listings. They will contact a seller whose listing has expired and attempt to relist them at the correct market value. Many sellers fall into the trap of initially pricing their homes too high due to a poor appraisal or misjudgement so take this into consideration as you prepare to price and sell your home
Avoid Significant Losses
Protect yourself as you get started to avoid taking a financial hit. Sellers can lose a great deal of money after an initial listing has expired. The house will need to be kept up to a high standard for private and open inspections and, of course, if there is an outstanding mortgage, you’ll need to keep making repayments. The biggest hit will come if you succumb when buyers offer you a low offer because your house has been on the market for too long. Take care to avoid all of these problems by doing everything in your power to price your house correctly from the beginning.
One of the best tools at your disposal is a real estate agent who will help you obtain an accurate home appraisal to give an indication of the value of your property. This can be done by choosing to work with a professional who has knowledge and experience of your specific market. Start this process by registering your details at LocalAgentFinder. You can compare real estate agents in your local area, side-by-side, for free.