When selling a home, there are a lot of things that can go wrong; especially for first-time home sellers. One of the worst things that hasty homeowners can do is price their home incorrectly. If the homeowner prices the home too high, they won’t get any attention or interest. If the homeowner prices too low, they are missing out on thousands of dollars in profit. Before committing to a price, homeowners should learn the signs that they are pricing their home incorrectly. This can help the house-selling process run smoothly.
Signs of Bias
When selling a home, it can be difficult to stay objective. However, being biased is one of the worst things that a homeowner can do when pricing their home. Many homeowners will set a high price for their homes; this is often due to them having sentimental attachment to the house. This cloudy judgement can leave a homeowner with a stagnant house.
Little to No Signs of Interest at the Open House
One of the primary aspects of the house-selling process is the open house. This is an event in which potential buyers assess the home. If there is a large turnout at the open house, homeowners can assume that they have priced their home reasonably. However, if the open house is reminiscent of a ghost town, the homeowner may want to consider gradually dropping the price of the home. As a rule of thumb, homeowners can decrease the price weekly in increments of $5,000 to $10,000.
Too Many Counter Offers
Another sign that homeowners have priced their homes incorrectly is that they receive an abundance of counter offers. This is especially true if the counter offers are drastically lower than the initial asking price. It may be worth it to negotiate; however, homeowners can avoid the hassle by sufficiently pricing their home at the beginning of the house-selling process.
Competitors Prices are Noticeably Different
There are few things that feel more undermining than losing a house sale to a neighbour. One of the best ways to avoid this is by researching the asking price of your competition. Homeowners can learn the prices of other homes in their neighbourhoods in a number of ways. They can visit open houses or contact the real estate agent in charge of the sale. By doing this, the homeowner can avoid having a noticeably different asking price than their competition.
Regardless of if you are using a real estate agent or are selling independently, it can be extremely beneficial for homeowners to learn how to properly price their home. There are a number of signs that homeowners can look out for when pricing their home. Some of these are signs of bias, little or no interest, too many counter offers or a noticeable price difference between other homes on the real estate market. If the homeowner notices any of these things, they may have incorrectly priced their home.
For more information about how to price your home correctly, do not hesitate to contact your local real estate agent.