Sellers agree that the best advice an agent can offer them concerns pricing recommendations on their homes. However, some sellers may not like the price the agent recommends and may instead choose to go it along in their pursuit of finding a buyer.
Here are some of the most common pricing myths a seller may want to believe are true. But, guess what? The myths listed here are all bogus.
1. It’s better to price the home on the high side because the seller can always come down and the buyer can always make an offer. WRONG…the asking price for the house sets the stage for any and all activity concerning the listing.
2. If the house is priced correctly, the seller risks leaving money on the table. WRONG…a properly priced listing generates interest and multiple offers. A properly priced house translates into fewer days on the market and stronger offers because buyers feel a sense of urgency to make a deal. If priced properly, buyers tend to not nitpick about every little detail…they just want to make a deal.
3. The listed price just gets better over time. WRONG…a house that sits on the market because the price is too high does not get better over time. Of course, some selling seasons are better than others based upon the location but having a house just sit there means additional costs (HOA, mortgage payments) to the seller and possible additional repairs. Additionally, a house that has to be relisted later because it didn’t sell will have to compete with more houses that may be better than the ones involved in the first listing competition.
4. The price as listed is as low as the seller will go. WRONG…no buyer is willing to pay more. There is always another house.
5. All offers will come in at or close to the asking price of the home. WRONG…again, no buyer is willing to pay what she/he thinks the market will justify. Sellers are often disappointed with “why so low” offers.
6. Outdated features do not impact the selling price. WRONG…buyers are looking at how much they need to spend to get the house up to current standards and functionality. Buyers deduct accordingly when making their offers.
7. Buyers’ “too low” offer is insulting and “just too low” to counter. WRONG…any offer on any listing is an invitation to negotiate.
Agents know that markets do not guarantee prices that a seller may want of expect. If possible, it may be worth an agent’s time to debunk some of these seller myths. Bottom line for sellers and agents alike, there are no second chances to make a first impression concerning the price of a listing.