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Updated 9/8/14 from Conversation on Activerain.com

When you decide to sell your St Augustine home, it is a natural process to deliberate the timing,  develop a plan where to move after the sale, and eventually reach a point where you are finally ready to hire a Realtor to list it.  When you arrive at this crucial point, consider the following facts before you decide to get involved, or allow the professional handle the details of the sale.

Overpricing is Futile

One of the biggest deceptions a seller will fall into is believing that the last appraisal they received during the re-financing of their home is what their house is worth.  Mortgage representatives excel in their positions, and obtain necessary documents to take care of their clients needs. They often have an uncanny ability to deliver, with what is referred to in the business, a "high end appraisal.”  Appraisers have the ability in their profession to appraise a home on the low end, mid-range (real), or high end.

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“But look what the neighbor’s got”!

Believe me, your Saint Augustine Real Estate Agent will indeed study your neighbors, and the area as a whole.  That is his or her job, and they are good at it!  What your Realtor knows that you may not is the Jones’ house has a livable walkout basement, as well as upgrades and and remodeling which adds thousands to the home value.  Similar homes are valid market comparables when they are truly exactly the same, and in the same location, combined with like geographical surroundings

Days on Market

home_with_dollar_sign_on_seesawHave you heard of that phrase?  Hopefully your buyer hasn’t.  Overpricing will almost guarantee your house is left on the market longer than necessary and often results in you selling for less than what you should have gotten initially.  Insisting that you are going to list and get a price that you think you deserve can price you right out of the market, wasting your and your Realtor’s time.

Pricing your home carries with it a list of important factors and is vitally important to ensure it’s priced right to sell. 

It’s in your experienced Realtor’s best interest to get you “top dollar” and it’s not likely they will under price it.

Trust them to have knowledge and experience to do so.

Don’t Feel Bad. You Are Not The Only One

Nobody loves their home more than the seller themselves. That is why “pricing too high from the start” is #1 on CAR Top 4 Most Common Pricing Mistakes. When you put your house on the market you must think of it as being sold already and detach yourself emotionally. Then you can look at through the eyes of the buyer and de-clutter and de-personalize as necessary.

Please believe your Realtor. Your Realtor probably has sold 5 other homes this month and been selling real estate for decades. So they know what they are doing. And they know that more or different marketing won’t make a difference on an overpriced property. If you want to see a Realtor’s perspective of getting your home solid then I recommend your read, “My Home Isn’t As Nice As That One That Just Sold Down The Street” and 5 other things you won’t hear from your home seller

Effects of the Wrong Price

7452-101413-gs7452_400Price is about 80% of marketing. With over 90% of home searches starting on the internet the first three things you or the buyer put in as search criteria is area, minimum bed and bath and then Price. In fact, Real Estate related internet searches on Google have grown 253% over the past 4 years.  So if you have one of the primary search criteria off; then you are loosing out on the majority of buyers.

Thus setting the right price initially can save the seller time & money. If the price is not set correctly then the seller will always be “the bridesmaid and not the bride” :  )

In fact pricing & timing go hand and hand. “Homes that are price to sell in 30 days net on average 97% of their asking price”

So trying a price when it is not based in reality doesn’t work. Selling your home doesn’t work when it is based on “I think I can. I think I can. I think I can. I know I can.” ― Little Engine That Could but on real life facts and figures. And overpricing can cause real damage.

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Don’t Go It Alone

NAR studies have showed that “Setting the right price” is one of the most difficult task for someone going “For Sale By Owner”.  And that is why the studies also show that Realtors average home price was 23% than a “For Sale By Owner”

Pricing is More Than Just Looking At the Comps

red_house_surrounded_by_grey_housesPricing a home has to take into many factors. That is why automatic valuations found on Zillow are so far off at times.  As Inman News puts it, consideration of not just local market data but also, “in-person inspection, property updates, neighborhood conditions and property conditions” must be taken into account.

Cookie cutter homes and condos without differences are easier to price. Any slight differences in these homes will be reflected in their price or how quickly they sell. The problem comes from return on value on major upgrades or difference in the homes. Here are the 5 worst home improvements for return on value.

Unfortunately, how much you paid for the home, how exotic of reclaimed wood you used in the 1st floor and other features doesn’t make a price “happen”. All it does is waste your time on the market. Asking more than market value can be justified sometimes … but it still will not sell your home

While Pricing is important there are other factors that control the Sale

error_computer_button_on_keyboardSetting the price is just the first step. Marketing, staging and showing all need to fall in line. After all, we can’t sell the home if no one can see it.  That is why it is #1 on Top Home Seller Mistakes

Pricing is priceless” - Joan Whitebook.  Over pricing is definitely the top pricing mistake. Here are some others.

Don’t Believe Me? Then Ask Google

Gone are the days of a buyer not knowing what else is out there for sale. The mls data is out there on google for everybody to see. Nowadays the average buyer knows what you bought the home for, what you original mortgage amount was and what permits you have pulled on the home. Real Estate related internet searches on Google have grown 253% over the past 4 years. So not only do you need to be priced competitively but you also need to make sure you have great pictures and ad copy to draw the buyer in.

2 Out of 3 Realtors Agree

3_realtors_standingI so agree and so do 2 out of 3 Realtors (Like 4 out of 5 Dentist?) ActiveRain’s survey shows that real estate agents believe that the “Biggest Home Seller Mistakes” is an “Overpriced Home”  Having a home that doesn’t sell might hurt more than a cavity.

Chris Griffith“I say it all the time, a full page ad in the New York times isn't going to sell an over priced listing.”

But It’s Not Just Price It Right and Wait

After putting the home on the market we, as Realtors, monitoring the market, feedback and broker opens in order to make sure we stay ahead of the market. We want to give you the knowledge of that foreclosure that came on the market at lower price and the option of competing against it or waiting for it to sell.

E=MC2 Einstein on Real Estate

Overpricing = Not Selling. What more needs to be said? (Ok Einstein didn’t say this but he should of)

Richie Alan Naggar“In the end...we will get market value. the fear of letting something slip through your hands is unfounded” Don’t  try a price that isn’t Realtor recommended and end up loosing valuable time and possible getting a lower price than if you just priced it right at the beginning. You are only hurting yourself.

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Posted by Carey Frankel on

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