It should come as no surprise messy homes that smell bad, are dirty or show signs of neglect are
big turn-offs to prospective buyers.
Buyers hate clutter! And uncleanliness —especially carpets — pet and other odors will send them
But, hands down, there is one mistake sellers make that tops the list: overpricing their property.
Dangers of Overpricing
Broker- and buyer-interest is at its highest when a home is first put on the market — and that
interest will remain high for about four weeks. But if a property is priced too high during this
crucial period, it won’t attract the right buyers. Once that momentum is lost, it’s difficult to
By overpricing your home, you create the need to reduce the price at a later time in order to
compete with the listings that are really in your price range.
Setting a realistic, market-based listing price, on the other hand, ensures that your home appeals
to the largest number of qualified buyers. This greater interest, in turn leads to a better
chance of offers. And if you think overpricing is a tactic that will encourage negotiations
down to your “real” price, think again. Buyers are smart. They have canvassed the open houses,
they’ve seen what is available, and they know what homes like yours are selling for. When they
see yours (if they see yours at all, remember you’re overpriced) they’ll move on without an
offer because your home won’t likely measure up to the other homes they’ve seen that belong in
that price range.
Pricing Your Property
So how do you decide on how much to ask? Pricing a property correctly requires understanding
the current market. What would a prudent person pay to purchase a comparable substitute?
To evaluate your home’s market value, your Prudential Locations agent will analyze recent
comparable sales activity. This is called the comparative market analysis or CMA.
They will evaluate three factors: comparing your home to others that have recently sold,
others currently listed and adjustments needed for extraordinary improvements.
Although home improvements can increase the value of your property, it is more likely
these upgrades will simply help the home to sell faster than the others without similar
renovations. This concept is sometimes difficult for sellers to understand. They feel that
if they spent a certain amount on a home improvement, they should be able to recoup that
cost by tacking it on to the sales price. But unfortunately, that’s not always the case.
Upgrades are important, but buyers may not share the owners’ enthusiasm for — nor agree with
— the owners’ perceived value of the improvements. And if a buyer doesn’t see the value,
then there is no value.
A professional analysis of the market, will take all of this into consideration as well
as analyze the price other homes have actually sold for, not just the asking price — there can
be a sizable difference. The most common mistake sellers make when pricing their property is
to only consider the asking prices of other properties. Remember, a list price does not
suggest market value of a home. It is simply the “asking price” or “dream sheet” of another seller.
Its relevance may, however, be in how you position your home with the others on the market.
It is also important to remember that today’s Internet-savvy buyers have access to all the
real estate information out there, other listings as well as past sales. Buyers are very smart,
and cautious, and are not willing to pay more than the actual market value for a property.
Consequently, it is not advisable to pick a real estate agent based on who offers the highest
list price or the lowest commission. While these are both common tactics to get your listing,
they are not a good way to get your listing sold.
At Prudential Locations, you can be assured you will have access to the most current market
statistics available. You will receive a comparative market analysis, which will give you
an honest look at what the market will bear for your home and you’ll have the professional
services of a Prudential Locations Realtor. Let’s get started.
I want a market analysis.