If you’re selling your home, you need to understand that pricing your home correctly from the beginning is absolutely critical. The most common reason a home doesn’t sell is because it is overpriced.
Overpricing a home can create damaging effects, period. The probability is that if you price your home too high in the beginning, you will likely end up with less money in your pocket, which is obviously not the goal when selling a home.
When selling your home, it’s absolutely critical you do not overprice it. If you happen to make the mistake of overpricing your home, it’s important that you identify this mistake right away and make a change immediately.
How does a seller know if their home is overpriced? There are actually many tell tale signs to know if what you are asking does not meet market expectations. Below are the top 10 signs that your home is priced too high. If you’re selling your home and have experienced any of the tell tale signs below, make sure you make an adjustment as soon as possible!
Your Home Is Priced Much Higher Than Your Neighbors
Generally speaking, in most neighborhoods, home values will be relatively consistent and close. One tell tale sign to know that your home is overpriced is if your home is listed $100,000 higher than other homes for sale in your neighborhood.
While it’s not impossible that there can be homes that have a $100,000 value difference, it is quite rare. One of the most common methods that real estate agents will use to determine a homes value is by completing a comparative market analysis. A comparative market analysis, also known as a CMA, is best described as a detailed analysis of sold homes in the past 6 month time period in a given neighborhood.
If your home is priced much higher than your neighbors, it’s very possible your real estate agent didn’t complete a detailed analysis of value. If a CMA wasn’t completed, this will not only lead to your home being overpriced, but also can create issues with bank appraisals.
You’ve Had Very Few Or No Showings
Excitement is a very common emotion that is experienced by a seller. Sellers are generally happy their home is listed for sale and being advertised all over the internet. Weeks pass by and there have been a couple or even worse, zero showings.
That excitement now turns to concern and frustration. If this sounds familiar, the likelihood that your home is overpriced is high. If your home has been listed for sale for a few weeks and you’ve had only a couple showings, you need adjust the price in the hopes to generate some activity and showings.
You Haven’t Received An Offer
In most real estate markets, if a home is priced correctly a homeowner should receive at least one offer within the first two to three weeks. If you haven’t received an offer after a couple of months, this is a great way to know your home is most likely overpriced.
If your local real estate market is currently in the midst a sellers market, you should expect an offer on your home within the first couple days on the market, if it’s priced correctly.
Certainly there are types of properties that may take longer than a couple days or a month to receive an offer on but it is fairly rare. This exists typically when selling a luxury home or waterfront property.
You Hired The Agent Who Recommended A Much Higher Price
In any given real estate market, there can be hundreds to thousands of real estate agents. When you are interviewing prospective Realtors to sell your home, it’s important that you know what questions yo should ask.
One of the most important questions relates to the pricing. It’s critical you understand how the prospective real estate agent came up with the listing price of your home. If you interview 3 real estate agents and one of the real estate agents suggests a price that is $30,000 higher than the others, you need to know how they came up with that number.
There are many real estate agents who will “buy a listing” by suggesting a list price much higher than the market value. If you made the mistake and hired the real estate agent who suggested a much higher listing price, it’s very likely your home is priced higher than it should be.
Neighbors Homes Are Selling & Yours Is Not
One of the most frustrating things for a seller is when the neighboring homes are selling and theirs is not. If you’re selling your home and this is happening, this is a sign that your home is priced too high.
A common statement from homeowners who are selling their home is, “My neighbors home just sold for $200,000 and mine is much nicer than theirs, why isn’t my home selling?”
One thing that many sellers fail to understand is that there are so many things that can influence the sale of a home. If this sounds familiar, a couple things to keep in mind when it comes to comparing your home to your neighbors include;
- Was your neighbors home a different style of residence? Ex; ranch vs. two-story colonial
- Was your neighbors home larger?
- Did your neighbors home have high end upgrades and amenities? Ex; granite counters, building additions, etc…
- Is the location of your home inferior or superior to your neighbors? Ex; corner lots or private/wooded lot
- Were the mechanics of your neighbors home newer than yours? Ex; new roof, windows, furnace, etc…
Bottom line, if your homes are selling in your neighborhood and yours is not, it’s probably overpriced.
Open Houses Are DUDS
One decision that should be made by homeowners who are selling their home is whether or not they want open houses. Statistically speaking, less than 2% of homes actually sell as a direct result from an open house. Open houses do provide potential buyers the opportunity to look at homes without feeling high pressure that some real estate agents may place on them.
If you believe that open houses are necessary to sell your home, what does it mean when the open houses are DUDS? If your real estate agent markets the open house and not one person walks through the door during the 2 hour open house, then your price could be an issue.
Like most, buyers have busy schedules, but a buyer will make the time to visit open houses if they are interested in a home. A buyer will however not waste their time if they feel a home is overpriced.
Internet Traffic Is Very Low
The internet has changed real estate industry over the past 10-15 years. The majority of home buyers are beginning their home search online. When a buyer is interested in a home they see online, they will reach out to either the listing agent or will contact their own real estate agent to schedule a private viewing.
One way to know your home is overpriced is if there has been little to no internet traffic or property inquiries. An experienced real estate professional who has a strong understanding of how to market homes for sale online should be able to provide traffic statistics as well as property inquiries.
Showing Feedback Indicates Your Home Is Overpriced
One of the biggest benefits to hiring a top real estate agent is they know the importance of receiving feedback on their listings. Feedback from other real estate agents as well as buyers who are viewing a property can be a huge help. If you’re not receiving feedback from showings, it maybe time to think about firing your real estate agent.
Feedback is important because it allows a homeowner the chance to correct things a buyer may object to. For example, if a prospective buyer indicates the paint colors are too “bright” it maybe time to consider repainting the room.
If the feedback from showings is that a home is overpriced, this gives a seller the opportunity to make an adjustment in the price.
You’ve Received Low Ball Offers
Most overpriced homes will not receive any offers, however, it is possible. Homeowners who overprice their homes and still receive a couple of offers should feel somewhat fortunate.
It’s a good chance that if a home is overpriced, the offers received are “low ball” offers. If a home is overpriced and offers are much less than the listing price, is it really fair to consider them “low ball” offers?
If you’re selling your home and have received several offers that you would consider “low ball” offers, you may need to reconsider whether your price is appropriate.
Your Home Didn’t Sell & Expired
Possibly the most obvious way to know a home is priced wrong occurs when it doesn’t sell and expires. If a home doesn’t sell and becomes an expired listing after 6 months, it’s not because there are not ready, willing, and able buyers in your local market.
Instead of blaming it on the lack of buyers or the local real estate market, it’s important a seller looks in the mirror and realizes that their home was overpriced. Every home has a price tag that is accepted to home buyers. If a homes listing price is relatively close to the number a buyer considers fair, it will sell and not expire, period.
The Importance Of Pricing In Real Estate
The number one reason a home sells is because the price was right! Determining the list price of a home is such a critical piece of the home selling “puzzle.”
If you put the correct price on a home, it will sell in a relatively quick time frame. If you choose to overprice your home, it will either not sell or will take several months to sell. If you choose to overprice your home, remember that you will likely receive less money for your home than if you were to correctly price it from the beginning! Call Abby Lee to get it priced right! 870-219-3732.
Until We Chat Again,
According to the National Association of Realtors, 42 percent of homebuyers start their home search online, and 92 percent use the Web during the home search process. While the Internet can be a good place to start looking, there are things real estate agents know about the process of buying and selling a home that can’t be found in any Web browser.
Here are a few.
1. How to price a home
When setting a listing price, agents consider scores of factors, from local and national market trends and neighborhood development activity to the latest buyer preferences for kitchen appliances and landscaping. Every home is unique, and an agent with a track record of success knows how to price it attractively in the market.
The Internet isn’t always much help when it comes to comparison shopping, either. Many of the same factors that help an agent set an appropriate listing price aren’t available in an algorithm, so online estimators aren’t always accurate – and could be costly if you purchase without consulting a real, live professional.
2. Marketing offline
While online marketing can certainly be valuable, agents have networks of contacts and years of experience to round out their marketing plans.
And, for buyers, agents often can tap into their network to learn about great properties before they hit the real estate websites or even the MLS.
3. Key points in the process
If you find a home you love online, the website won’t be there to guide you through a mortgage application, find a home inspector or advise you what to do if an inspection reveals issues.
4. How to negotiate
Having an experienced, professional negotiator drive your transaction can be vital to reaching a fair price for the property you’re buying or selling. A website can give you an estimate of how much a property should cost, but it can’t evaluate whether that’s a great price or not.
Give your front door a colorful boost
Your home’s entry is much more than just a door – it sends a message to every visitor, including yourself. If your front door is looking worn, or if you’re looking for a fast, affordable way to spruce up your home’s curb appeal, brighten it up with a new and welcoming color.
Painting your front door sends a colorful message about your household’s personality. Here are some examples of what certain hues say about you.
Blue – This provides a calming effect as it suggests stability and trust.
Yellow – logical, but creative, you look at life with a positive, happy attitude.
White – you like to keep things simple, organized, and neat.
Red – You’re a bold go-getter who lives life to the fullest.
Green – A traditional choice. You value ambition, growth and security.
Brown – You’re warm, reliable, and down to earth. (my front door is brown!)
Try it before you buy it. If you want a preview of your front door after it’s painted, you can download a free app to your cell phone for a fast preview. Just take a photo of your door and you can “try on” new colors. For example, the Front Door Paint app is available for both iPhone and Android. And to get a professional opinion, call me at 870-219-3732 or visit my website. Jonesboro, Arkansas is full of personality and color.
Until We Chat Again,
As an agent this is one of my biggest pet peeves….a cluttered, dirty, unkept pathway to the front door of a listing. This is the first impression. It can make or break the rest of the showing.
How does the front door look? Does it need to be painted or replaced? Does the door unlock easily for the agent? If you think it is dated, dirty or not in good working order, than so will the buyer. The front door needs to be in perfect condition. It sets the stage for the buyers first impression of your home and how you have maintained it. There is nothing worse than being the agent who has to force the door open with a wedge sandal or knee boot with buyers watching with a, “you got it girl! you can do it” because the door will not open correctly. It is unattractive in every way possible!
Power wash the front porch and make it shine. Add a clean or new welcome mat, get rid of leaves, cobwebs, and anything on your porch that is not needed in helping give a buyer a great first impression to your home. Paint any thing that needs to be painted on your porch and don’t go with loud, off the wall colors. Stay neutral.
In our area this is the time for mosquitoes to take over porches. Please keep the porch sprayed and clear of standing water to prevent buyers being attacked by swarming mosquitoes as they wait for the agent to open the front door. The agent will appreciate that also!
Trim bushes and do landscaping if needed by adding mulch and flowers for a pop of color. keep the grass mowed and yard manicured well. Get rid of all yard clutter and weeded areas. Make sure your mailbox is in working order and looks nice. Go out to the street and look at your house. Would you buy it? If the answer is “yes” than you have done a good job!
I would love to help you if you have any questions or need a professional eye! To see some listings with great curb appeal, visit http://www.jonesborohomesource.com
Until we chat again,
Just considering selling your house can be overwhelming. Instead of thinking about your new home, you are worried about all the tasks that have to be done just to prepare to sell your house! It seems like it will take forever.
Well, you know how you eat an elephant? One bite at a time. That’s how you will tackle preparing your house to sell, one room at a time. You can prepare to sell your house in just two weeks!
Day One, Home office:
• Create mailbox system on desk with one box for each member of the family
• File away or shred all statements with personal information
• Gather important documents and records and put them in one location.Things like birth certificates, death certificates, marriage records, home movies, memorabilia, medical records and insurance policies. All of these items should be hand carried to your new home and not accessible by prospective buyers.
Day Two, Kitchen
• Sort the pantry. Throw away everything expired and donate anything you won’t be using or that you don’t want to move
• Add freestanding expandable shelves to increase space, even a small pantry can look spacious if organized well
• Evaluate the contents of every drawer with this in mind; items that are used daily stay, items that are used occasionally can be packed and items no longer useful should be donated. This will help to give the kitchen the appearance of space.
• Clear the clutter off counter tops. Only small appliances that are used daily and 3-5 accessory items should remain. All others can be packed.
• Clean everything including the top of the frig and the inside of the oven.
• Remove pictures, magnets, calendars, and artwork from the frig.
Day Three, Living Room
• Remove family photos
• Edit accessories to just twelve favorites that add color and personality to the space
• Add baskets to bookcases. Personalize them for each family member. Baskets can then be used to stash toys, homework and other odds and ends.
• Clean baseboards, ceiling fan, and shelving
Day Four, Rest and catch up.
Day Five, Garage
• Designate a staging area for packed boxes
• Pack all seasonal items that won’t be used in the next 3-4 months
• Keep all sporting equipment and toys contained in large trash can
• Hang bikes
• Clear any work areas
Days Six and Seven, Bedrooms
• Use removable adhesive hooks on the back of the door for kids to hang backpacks, jackets, towels, etc.
• Pack all non-favorite toys
• Remove posters, staples, fill holes and paint as needed
Day Nine, Hobby/Play Room
• Go through all craft supplies and throw away anything no longer in working order
• Sort all small items and place into containers
Day Ten, Bathrooms
• Every family member gets a small caddy to keep personal hygiene items in. When not in use it is stored under the sink. Give everyone a small container of wipes to keep in the caddy and instruct them to wipe down surfaces after use.
• Edit bathroom towels and linens. Keep a two week supply, pack or donate the rest.
• Evaluate all medications and first aid supplies. Toss everything that has expired. All remaining medications should be hidden elsewhere in the house.
• Place a plastic basket in the shower or tub to contain shampoos and soaps.
• Place a squeegee in the shower. Last person to use the shower wipes down the glass.
Day Eleven, Closets
• Pack all out of season clothing and accessories
• Look at each item to evaluate if it can be tossed, kept, or donated.
• Organize shoes
• Nothing should be on the floor
Day Twelve, Media Room
• Tag the cords on all equipment. This will make it easier to put back together in your new home
• Label remotes
• Match cds and dvds to their cases
Day Thirteen, Dining Room
• Pack all glassware and serving pieces that will not be used until after the move.
• Leave just one item per shelf in display hutches
• Remove leaf from table if possible
Day Fourteen, Rest and catch up.
After you get through the list, you will feel so much better prepared to list your house and can focus on what lies ahead for you.
Then you can call me to come list it and get it sold for you!
Until we chat again,
Call me for listing information. 870-219-3732
Always full of real estate chatter,