How to Avoid Real Estate Pricing Errors
When selling your home, price really matters. It can mean the difference between a home that sells in a matter of days or weeks or the home that remains on the market for many months or even years! So how do you avoid these pricing errors to ensure a prompt home sale at a fair price? Well, that’s precisely what we’ll discuss in today’s article from Orange County Berkshire Hathaway Realtor Brittany Leighton.
Don’t Try to Come Up With a Price Based on What Others are Asking
The reality is this: you can ask any amount that you’d like for a home but this has no bearing on what people will actually pay for the property. But many homeowners overlook this fact and as a result, they make the mistake of coming up with an asking price based upon others’ asking prices (which may or may not be appropriate).
What’s more, you cannot assume that your home has the same value as another home in the same city or town, even if it’s comparable in size and style. You must consider location, because the home’s location in terms of neighborhood has a significant impact on real estate value. Other variables, such as the quality of the build, special features and amenities, can also impact selling price.
In short, don’t attempt to perform comps on your own. It’s best to work with your real estate agent to determine a suitable asking price based on recent sale prices for comparable homes in your immediate area.
Don’t Inflate the Price Just So You Have Wiggle Room
Most sellers understand that they may not actually receive their asking price because negotiation is a very commonplace part of the process. But you must avoid inflating your asking price just so you have room for negotiation.
This is problematic because buyers compare homes. If you inflate your price, your home just won’t measure up to the comparable properties. This makes your home look like a poor buy and it’s very challenging to get a buyer back in the door if you lower the price down the road (especially if they have that negative first impression that your home was overpriced.) They may also assume that you won’t be open to negotiation.
Don’t Price Your Home Based on How Much Money You Need to Get Out of It
Some sellers go into the process believing that they need to “get” a certain amount of money from their home sale. This figure could be based upon how much they owe on their mortgage or how much they’ve spent on home improvements or how much they need to buy their new home.
The reality is that there is no correlation between how much you need (or want) to sell your home for and how much that home is actually worth in the current market conditions.
In short, if you’re seeking significantly more than the listing price that your real estate agent recommends, it may be best to reconsider whether now is the right time to sell. Southern California home prices are on the rise at a fairly rapid clip, so it may be best to wait and hope that this trend continues.
Contact Realtor Brittany Leighton to Buy or Sell Real Estate In Southern California
Brittany Leighton, of Berkshire Hathaway and Brittany Leighton & Associates, Inc. specializes in luxury property sales in Southern California, including Orange County.
If you’re ready to sell your home or wish to buy real estate in Southern California, turn to an award-winning real estate agent, Realtor Brittany Leighton. Call 949.480.7178.