One of the most important decisions to make when selling your home is deciding on the listing price. There are a lot of things to consider to accurately price the home and your Realtor should discuss these with you and explain how he/she arrived at the suggested price. After several years of having these discussions, we have found common objections owners use to justify a higher price.
I Don’t Want to Leave Money on the Table
Many owners erroneously believe they should start high for fear of missing out on the extra dollars they could make. These sellers believe the high price will test the market and maybe someone will bite and be willing to pay the higher price. This almost never happens. Not only that, but the home typically will sell for less and take longer than if an accurate market price was listed from the start. Remember, the market value of your home is what a buyer is ready, willing and able to pay – no more, no less.
I’m in No Hurry to Sell – So I Can Drop the Price Later
Some sellers believe they can command a higher price if they just wait a little longer for the right buyer to come along. After all, someone is bound to come along and fall in love with the home and it will be a perfect match. Unfortunately, the longer your home is on the market the more it becomes that tired old listing. There is a certain stigma that develops when a home has been on the market a long time. Buyers and agents begin to wonder if there is something wrong with it. Once you start lowering the price, it has definitely acquired that stigma. Price it right from the beginning to get the best offer.
I Can Sell It Myself and Save the Cost of Your Commission
Yes, you can sell your home yourself. Make sure you understand all that is involved to effectively market it, produce the proper disclosures and draft the proper documents. Ignorance of the law is no excuse for breaking it.
Keep in mind, you will need to pay a buyers agent commission of between 2-3% in order to attract agents to show your FSBO (For Sale By Owner). You will also have other out of pocket costs for online listings and putting the property on MLS. Be prepared to spend a lot of time, like having another job, on tasks to sell and show your home to potential buyers.
Before deciding on the FSBO route, read “How Much Will You Really Save by Selling Your Outer Banks Home Yourself? According to the National Association of Realtors, FSBOs accounted for 8% of home sales in 2015. The typical FSBO home sold for $185,000 compared to $240,000 for agent-assisted home sales.
We at Eillu, have created a team approach to sell homes. Our efficient system allows us to list homes for 1.5% listing fee, capped at $15k to pass the savings onto sellers.
But, I Paid $x Dollar More When I Purchased the Home
It is sad when a homeowner needs to sell and finds their home worth less than what they paid for it. This happened frequently after the most recent recession. Unfortunately, what you paid for the home has nothing to do with what it is worth now. If you find yourself in this position and do not have to sell, consider waiting a little longer to see if market values rise. Of course, there is a risk that other mitigating factors may occur, like rising interest rates, that can impact the price of your home.
I Put a Lot of Money into Improvements
The sad truth is every dollar you put into your home, you will not get back out when you sell. Most home improvements return a fraction of what is spent. However, some of these may make your home more appealing to attract buyers and their offers. Also, you have been able to enjoy the improvements you have made during your ownership.
Before taking on a home improvement project, consider the typical return on investment for the improvements. This report shows 29 projects where the average pay back is only 64.3 in resale value. Carefully consider the improvements you make to your home to make sure it is fitting for the neighborhood. If you over improve your home for your neighborhood, your return can be even less.
If you are thinking of selling, contact Eillu and get a Free Current Market Analysis. Our experts will provide a detailed analysis with comparables and explain the results. We can also suggest some simple improvements to enhance curb appeal and attract buyers and full value offers. We have invested in technology and process improvements to save you money. Our listing commission is 1.5% and capped at $15k. It is the best value on the Outer Banks.