9 Costly Mistakes to Avoid When Placing Your Home for Sale - Part 1
The Wrong Asking Price
Buyers have a choice – your home or someone else’s.
Your asking price should encourage buyers to view your property because they see it as being realistically priced and good value. With a bit of luck, the price you ask will attract several buyers which will probably result in a sale at higher than the asking price, a great result by any standard.
So how do I find a possible starting price?
Finding out what else is currently for sale, comparable properties both in your area and nearby, will give a price range around where your property sits amongst your competition.
There are plenty of places to get that information from;
If you have a smart phone or tablet, realestate.co.nz has a very useful app that allows you to search for properties for sale ‘near me’.
OK, got that, now what?
Once you have got a price range into which you think your property sits, now it’s time to work out the best possible asking price for yours that will meet the target of getting multiple offers as outlined in paragraph one.
This is the most important and sometimes difficult task because this is your home. You are emotionally attached to it, there are memories here that are special to you and you have probably invested a large amount of time, effort and even money to make this your home.
Unfortunately, buyers will not reimburse you for the value to you of any of those things, so being as dispassionate as you possibly can, try to view the property from a buyer’s perspective and comparing apples with apples, pitch your first asking price slightly lower than your closest competition.
What do you mean – first asking price?
Your asking price, if realistic, should attract almost immediate interest. Remember that there are already a lot of buyers out there looking for a home right now, so they will quickly find your home once you start marketing it for sale, and if correctly priced, show interest and hopefully even an offer or two in the first few weeks.
If not a lot of interest or any offers, then the asking price that you have tried was slightly off where the buyers actually see your property as being good value. Remember that you need to attract buyers to your property with a realistic price – that means realistic to them, not you.
So if nothing is happening, adjust your asking price, don’t make the fatal mistake of waiting for another group of buyers to come along in the hope that they might pay your price. This mistake alone can cost you many thousands of dollars! (This will be covered in detail in mistake 3.)
Asking price NOT selling price
All the above will help you to determine a realistic asking price, this can be quite different from the final selling price, which can be either lower or higher, so keep your focus on using an asking price to attract buyers, not to determine what you will end up with in your pocket..
This is part one of a nine part series for home sellers.
Part two will cover mistakes on calculating the net price.
Author, Graham Lester
Maggie Dixon Real estate