While some people get their homes into the market and sell them within a few months if not weeks, others go for years without getting a single order. According to realtors DC, one of the primary reasons why this happens is due to wrong pricing.
The Realtors report that people make plenty of mistakes when setting the prices of their houses thus putting potential buyers off. The most common mistakes made by many sellers are:
Pricing the house too high
A high price comes with the value, but this doesn’t mean that you will sell the house fast because it’s providing value. You need to be cautious of the price you set the house. If you set it too high, few people can afford it thus you get fewer or no offers at all.
Did you know that the longer your house stays in the market the cheaper it gets? According to a study done in 2012 by the MIT’s Center for eBusiness, houses that go for months without offers suffer up to $32,000 reduction in the eventual sales price.
This means that if you are looking to sell your house at the right price and fast, avoid pricing it too high.
Focusing on the price per square foot
All you need to do is take the average price per square foot in your area and multiply it by the square foot in your house and you get the perfect price to sell your house, right? Wrong.
Plenty of factors such as lot size, history of the house, extra amenities, and upgraded finishes determine the price at which you sell the house.
Due to these factors, the price per square feet varies greatly from one house to another. The only time that you can charge the same price per square foot in different houses is if the two homes are identical in everything, including their history.
Basing your price on your neighbor’s asking price
For you to know the price you are going to sell the house its natural to price it at your neighbor’s asking price.
You should note that the set price isn’t the actual price of the house. The actual market value of the house depends on many factors such as the price of similar houses in the neighborhood, among many other things.
If you aren’t sure about the right price that you should sell the house, talk to a real estate professional who will guide you on what you should do.
Relying on online price estimates
Online price estimates are easy to get as all you need to do is key in the size of your home, your neighborhood, additional features in the house, and the algorithms will determine the price for you.
While the tools are highly convenient, they aren’t accurate. The pricing algorithms are broad estimates of what you should sell your house. Remember, the algorithms don’t put into consideration the floor plan, upgraded finishes, layout, updates, and buyer demand in your neighborhood.
When you price your house solely based on online estimates, you have high chances of pricing the house too high thus making the house stay in the market for a long time.
Failing being open to negotiations
Just like when selling any other product, sticking to the asking price puts buyers off as most of them are looking to negotiate the price. Most people that don’t have room for negotiations are those looking to get the full amount that they set as the asking price.
In most cases, these are people that are looking to keep the house in the market for as long as possible. Do you want to sell your house fast? Be flexible in your pricing and provide room for negotiation.
Being too creative with the price
There are many ways of coming up with the price of the house, but it doesn’t mean you should use them. Some people make the mistake of coming up with creative ways of pricing their houses that they come up with a figure that takes the attention away from the house. This is wrong.
The best way out is to work with your real estate agent DC who will help you in coming up with a round number that is easier for both of you.