6 costly mistakes to avoid when selling your home (part 1/6)
Pricing too high is a hard thing to avoid. Imagine you feel your home is worth £400,000 and you get told the agent can get you £410,000 or even £415,000 so they advise marketing at £425,000….
Who would say no to an extra £10,000+? … I wouldn’t!… BUT, it can be so damaging.
Firstly, lets give the benefit of doubt here and say your home is really worth £410,000.
Looking at Rightmove brackets, at this level they go £400,000, £425,000, £450,000 etc. etc.
So, do you market at £400,000? £410,000 or £425,000?
Well, believe it or not, most people seem to be attracted to the higher figure with expecting to take a “hit” with negotiation.
with the property being worth £410,000 and you market at £425,000 then you are overpriced. Its as simple as that.
If you market the property at “offers in excess of” £400,000 then the property seems good value, meaning added interest. Added interest means more viewings, more viewings mean more offers… and so on, you can see where I’m going with this.
The more offers you have the easier negotiation is, meaning you can get the same price as what you originally wanted. Just going via a different method.
**something to be aware of, where the market is tougher at the moment, those agents who aren’t strong are struggling, therefore every. Single. Valuation counts (for them). Meaning they are desperate for your business and on the balance of probability will tell you what you want to hear to win your instruction. With the majority of the time that being a higher valuation to win your instruction.
By going on at the higher price, you run the risk of going stagnant. With people realising you have been on for a long time and as a result getting less and less interest day by day. The general public will have the “nobody wants it” attitude or assuming something is wrong with the property.
Which then only leaves one thing. Reduction.
Now, if this is the case, surely that’s where you drop down from £425,000 to £400,000 surely?…
By going down to its actual market value is going to be an issue, you still have the stigma attached to it which is hard to see past. Which then means you are going to have to reduce much further to make it look attractive and seem “a deal” …. So, you could end up going down to £375,000-385,000….
By which point, you have lost literally £1000’s… all for chasing a “promise”.
By sticking with the more appropriate plan, you could have almost been guaranteed the right price, in a quick time frame.
You see this is the difference.
Some agents don’t have a ‘strategy’… they have a foundation of a ‘plan’ which starts and ends with ‘sticking it on Rightmove’ … but it takes a real strategy to get a property sold, quickly and for the best price.
If there is one thing you take away from this. The price is there to ENTICE. Nothing more.
Once they are in your door they will pay what it is worth and its your agents’ job to ensure that. The biggest battle in the war is getting them through the door, once that is conquered, you have the higher ground and its easy from there.