When you sell your home, there are four main pitfalls you need to watch out for when coming up with a list price.
- Overpricing your home out of the market: When people search for homes on websites like Zillow or Trulia, they search in a certain price range. If you price high because you’re trying to get top dollar, your home will be in a range where many buyers will never even see it. You want to price correctly.
- The home stays on the market too long: Everyone will begin to wonder what’s wrong with the home. The longer it’s on the market, the more reasons buyers will create to make a lower offer. An appraisal will determine the value of your home. Appraisers work for the bank, not the buyer or the seller. This price is critical because the bank won’t lend on a price that’s too high in case they get stuck with a foreclosure.
- Even if you get a higher offer, you’ll have to renegotiate the price if the appraisal is low: At that point, you’ll be 30 to 45 days in, swaying the negotiation power to the buyers. Over our 15 years in the industry, we’ve certainly learned that overpriced homes take a long time to sell.
- You’ll lose negotiation power:Buyers will know they have leverage if a house sits on the market for too long. We use a strategy of pricing your home effectively so that we have multiple buyers bidding on your home. You want that negotiation power on your side, not theirs. Having buyers competing for your home is how we get the maximum price in the shortest amount of time.
If you have any other questions about the best strategies for pricing your home in the Tracy, CA market, give me a call or send me an email. My team and I would be happy to help!