It’s very exciting when a homeowner entrusts you with the marketing and ultimate sale of their home. Yes, you got a new listing!
Fast-forward a couple of weeks or months, and if the listing hasn’t sold, then you have some explaining to do. In a recent Existing-Home Sales Report from the National Association of REALTORS®, annual home sales are listed at 5.04 million homes. In order to put that number into perspective, let’s divide it by 365 days, and you’ll find that there are 13,699 homes sold every day in the United States on average (not accounting for seasonality).
With all of these homes selling across the country daily, blaming the economy or the local market for an unsold listing isn’t going to be a strong position with the home seller. It’s far more likely that you’ve made one or more common mistakes when pricing your listing.
Here are three common pricing mistakes that prevent listings from selling in a timely manner:
1. Overpricing from the Start
It’s extremely common for sellers to overvalue their homes compared to other homes in the same neighborhood and price range. Our job as local market experts is to advise and counsel home sellers on the correct pricing strategy.
One of the most important steps in correctly pricing the home is to take an honest look at similar homes in the area that have recently sold. While the seller may feel that their home deserves to command a higher relative sale price, the market determined these comps to be a fair price, so buyers will expect your asking price to be in the same ballpark.
An overpriced listing is a sure way to scare off plenty of potential buyers and waste a lot of your time.
2. Ignoring Search Ranges
These days, almost every buyer searches for homes online. If a potential buyer searches for homes in the $250,000 to $300,000 price range, they won’t see your listing if it’s priced at $305,000.
Even if your listing is a perfect fit for the potential buyer, he or she won’t know about it, even though it’s only $5,000 above their price range search.
You want to make sure you’re not pricing your listing just outside of someone’s price range, so be sure to avoid pricing just over common increment breaks.
3. Not Being Open to Offers
There’s an old saying in our business that the first offer is the best offer; however, you should advise the seller to carefully consider any and all offers that come in, even if they’re well below your asking price. Negotiation is the name of the game. It’s not where an offer starts, it’s where mutual acceptance ends.
Do you want your listing to be one of the 13,000-plus homes that will sell tomorrow? Review your pricing strategy today!
Wendy Forsythe is the executive vice president and head of global operations at Carrington Real Estate Services.