These days it seems like every time you turn around you hear about how bad the real estate market is. Here in the Richmond, Virginia and surrounding areas including Mechanicsville, Hanover, King William, Henrico County, Glen Allen, Varina, etc.the market isn’t quite as bad as the nationwide estimates. . The average time that a home sits on the market before it sells is up over 2 months., compared to over 6 months nationwide. Property values are not increasing at the same appreciation rate as in 2002-2006 and foreclosures are up. If you are serious about selling your home you need to price it right.
There are quite a few mistakes that people can make when pricing their home. If you really need to get your home sold, be sure not to make any of these mistakes:
1. Starting too high. We can’t tell you how many times we have heard this on a listing appointment for a home around $175,000, “Well, let’s just start out at $210,000 and see what happens.” A seller wrongly thinks that it won’t hurt anything to start sky-high with their price and then drop it later if (when) no one bites. Todays buyers are very savvy. With just a click of a mouse they can find out how long a home has been on the market. They see a home that has been on the market too long as the perfect target, a desperate seller. By the time they actually drop their price out of fantasy land and into reality, they have actually dropped the value of their own home and will usually end up taking less than current market value.
2. Letting an agent “buy” your listing. When you interview agents to list your home, you are usually given a marketing proposal and CMA, which is basically the agents opinion of the price your home should sell for. Some agents will come in and tell you your home is worth a whole lot more than it is. They figure that the truth hurts and if Agent A says your home is worth $175,000 and Agent B says your home is worth $200,000, you are more likely to list with Agent B. Agent A was giving you an honest opinion of what your home will sell for and Agent B was giving you an inflated number to get you to sign a contract with him. In the business, we call this “buying a listing”. Once you sign with Agent B you are stuck with him for 6 months or possibly longer. If you are thinking along these lines, and you have talked with agents who have very different opinions on the value of your home, sign only a 30 day listing. This will allow you to “test” the market with Agent B but can come back to reality with Agent A while not wasting too much valuable time.
3. Pay attention to the comps!! Numbers don’t lie. When the agent you are interviewing gives you his price, it should be supported by a list of similar homes that have sold in your area recently. Also, you should ask to see information on the homes that are currently listed but not sold. If nothing in your area has sold in the last year for over $200,000 don’t list for $250,000!! It sounds ridiculous, but it happens everyday.
4. Take emotions out of the equation. A big thing that would-be sellers forget is that they are selling their house not their home. You still get to keep all of your memories and personal belonging that mean so much to you. You have to remember that selling your home is a business transaction. Your fond memories of the home have no monetary value to a potential buyer. Of course selling the home where your kids took their first steps is probably going to be depressing. You have to just remember that when you get to your new place, your memories come with you and you will learn to call the new house your home and make new memories.
5. Properly Prepare Your Home For Sale .In this market, your home has to be in good market condition. In the Central Virginia area including Mechanicsville, Hanover, Glen Allen, Henrico County, Varina, King William, Chesterfield and other surrounding counties, there is more inventory on the market than we have seen in years. If your home is cosmetically challenged or otherwise looks ill kept, that potential buyer will go to the next house. If you do not have the Resources to accomplish the task of getting your home in tip top showing condition, ask your Realtor. Any Realtor that has been in the business should have a list of Resources to provide you. A small amount of money spent upfront will pay large dividends later! See my next article for a list of items that you can do to get your home ready…
Good Luck & Happy Selling,
Kathy Holland Broker/Owner
