When homeowners are preparing to put their properties on the market, one aspect is usually foremost in their minds – money!
Setting the asking price accurately can mean the difference between getting an offer quickly and having a house languish for months, attracting little interest.
With that in mind, it’s important that potential sellers don’t try to be too intricate or clever when deciding what entry price point their property should be. There are plenty of myths that may cause sellers to lose sleep at night as they attempt to separate fact from fiction.
The following are statements that can stand in the way of a successful sale.
1. If we keep waiting, a better offer will come along!
Wrong! when sellers receive an offer from the first viewing, they may be sceptical or hesitant to accept it, wondering if other prospective buyers would be inclined to pay more. Thoughts of potential bidding wars could cause sellers to want to wait and see who else falls for their place. But, remember the old adage, “A bird in the hand is worth two in the bush?” There’s no guarantee other would-be buyers are waiting around the corner. If the offer is a fair one, consider it fully and count your blessings, especially if you have seen a property you might want to buy. Snooze and you lose as they say!
2. Getting an offer right away, means the agent priced it too low!
When sellers receive an offer early in the process, as excited as they might be, many can’t help but wonder, “Should we have asked for more money? Did our agent price it too cheaply?” While it’s natural to be cynical (and even a little greedy), receiving an offer on the early end of the spectrum most likely means your home was priced accurately and attractively, particularly in a market which isn’t sure which direction it is headed. If you trust your agent, you know he or she didn’t pick a number out of the sky, but rather based it on extensive market research, local knowledge and experience. So, be glad you may have a potential sale.
3. We should price it so there’s room to negotiate!
Let’s be honest: Most sellers would love to get top dollar for their homes, it’s human nature, we all would. But overpricing it with the intention of being willing to accept a lower offer may just leave you empty handed in the long run. Plus, if you have to drop the asking price multiple times, buyers may begin to wonder what’s wrong with the property — other than the price, that is!
4. That’s not what my Zooplamate says it’s worth!
Have you ever noticed how homeowners are eager to believe portal guesstimates? or other automated valuation models when that price exceeds their expectations? Yet, when the opposite happens, they assume it’s outdated or a computer glitch? The point I am making is, these numbers can be inaccurate, so again, trust your local agent over the Internet. Enough said.
5. We can add all renovation costs to the asking price!
Sellers may adore the improvements and renovations they’ve made and want to add in those costs to the asking price. But remember, not every change is going to create a huge return on investment. If you’re curious about what you can expect on those fixes, talk to your agent before carrying them out about which improvements yield the biggest return on investment. Also, as you’re making changes, bear in mind that the new pool you view as an asset may just seem like a huge liability to a buyer with young children.
6. My Estate Agent overpriced my house to make a larger commission
Most High Street Agents are paid a percentage of the selling price of the home. However, even if they were to raise the asking price by £10,000 in most cases that would yield an additional £100/£150 in commission. It’s hard therefore to imagine an agent would blow a potential early sale — and take on weeks or months of additional viewings and marketing expenses — for £100, although there are exceptions in every town I am sure!
7. Reducing the price is a sign of weakness!
While no seller is eager to drop the asking price, if time is passing and there’s been little interest, it could be time to consider lowering the price. Remember, time is money. While you’re waiting for someone to meet your price, you’re still potentially paying the mortgage and other associated house hold costs and also missing out on properties that you might wish to purchase yourself which can be very depressing. Plus, sometimes, lowering the price can put your home in front of a group of fresh buyers, which could generate a lot more interest and, ultimately, get the price back up closer to where it was in the first place.
Thanks for reading.
Whether you are selling, buying, letting or renting, we’re here to help. Call Joe, Emily, Patrick, Sarah or myself on 0161 428 3663 or e-mail firstname.lastname@example.org. Better still why not pop into our High Street in Cheadle for a friendly, informal chat – you never know we might even make you one of our famous brews!