Why Home Sellers Need to Price Their Home Right

A lot of home sellers believe the number two mistake you make when you are trying to purchase a home is to price it too high.  More often than not this belief actually turns out to be a mistake made by inexperienced sellers.  Therefore, working with the right real estate agent who will understand the motivation, needs and issues of the home seller and then evaluate the specific situation correctly is one of the most important things a home seller will need to do before beginning the home buying process.

Real estate agents are often in the position where they feel something needs to be fixed, repaired or improved and that is where they make this type of request.  Often, when an agent sees an attractive home they become emotionally involved in the sale.  This emotional involvement usually results in the home seller over pricing their home for sale by mistake.  And often times the home seller mistakenly believes that their home is worth more than it actually is which by the time they make it through the home buying process becomes a self fulfilling prophecy.  And as a result an unqualified buyer makes an extremely low offer and gets rejected. This initial low offer frequently gets the home seller flipped off the market until a qualified buyer is found.

Hiring a Real Estate Professional

Frequently times the best deal will be made between a knowledgeable and experienced real estate professional and someone who doesn’t know the most about the process, but who does have the Drive to succeed!  Unfortunately, Realtors sometimes feel the need to sometimes practice their over-eager attitude in a home they are trying to sell to someone they really don’t know.  To avoid this situation make sure that the Realtor you hire understands the complexity of home pricing.  Or, at the very least, ask them to give you a price analysis so that you can see their educated suggestion as it relates to the factors they just showed you.  A home seller should be upfront with a potential Realtor about the reasons they are selling and/or the reasons they characterized the promised improvements the same way.

Home Owner’s Association

If you live in a home owner association, or HOA, make sure you are not working with a delinquent association.  In some situations, delinquent associations can make for very good home selling opportunities as the seller may not be aware of the problems, or what needs to be addressed.  However, in other cases, the seller may be a delinquent association and therefore you will not be able to eliminate as many home selling variables as you might think.  This is particularly important in communities that require those who own homes to be especially careful with their vendors.

Location

This is the ultimate home selling factor.  “Location, location, location” is often the biggest problem that home sellers have when they begin to list their homes.  If your home does not show well in this area, it will be very difficult to get it sold.  If you decide to try to sell it or even see just what you can do to get it better located you will likely find that you have a lot more difficulty.  Many home staging professionals can help you find homes that are close enough that you can get the home into the neighborhood that you are looking for, or quickly out in the area that you are trying to sell.  However, budgeting for home staging often will not get you quite as good of a return on your investment.

Condition 

You will often hear that the number one reason that backs tea people from selling their homes is that they felt they did not explain enough about the condition of the home to potential buyers.  The truth is, many a home seller has agreed to list their home assuming that there would not be anything wrong with their home and just hope that someone will bring the check to the closing table.  However, just because you understand a little better what is meant by “fair market value” does not mean that your home will sell at the top of the market price.  You still need to make a decision about what is worth the money to you, and you still need to ask the right questions before it is too late to fix the problems.