Setting the asking price accuratley can mean the difference between getting an offer quickly or having your home on the market for months, drawing little interest.
Here are my top 7 myths that I've seen stand in the way of successful sales.
1. If we keep waiting, a better offer will come along!
When an offer is presented after the first week or open home, there can be sceptisism to accept it wondering if in fact there could be another offer of more in the next few weeks(or months)
Time to deploy, 'a bird in the hand is worth two in the bush' quote. There are no guarantees that the next group of buyers will love your home as much. Counter offer and count your blessings!
2. Getting an offer straight away means the property was priced too low!
Sellers often ask; was it priced to low, can we ask for more money?
The reality is the property was priced accurately and attractively. Good agents don't pluck numbers out of the sky, they do their research and provide figures based on the market. Important to know this figure will generally vary from your initial figure.
3. Let's price so we have adequate room to negotiate!
Let't be honest, we all want top dollar when we sell our homes but pricing it with the intentention of being willing to accept an lower offer may leave you with no offers in the long run.
4. 'that's not what the ANZ and realestate.com.au say my property is worth!'
These sites are fed data only, not property size or age specific information. These numbers can be grossly inaccurate - Trust a human in this case i.e your real estate agent!
5. 'Our full renovation cost can be added to the selling price!'
Consider the types of renovation you've done and wether this will land you a huge return. e.g replacing a roof - very important, not super sexy therefore not a return on money item or a kitchen reonvation of $10k could add $15k to your asking price, it's visual and adds immediate value.
6. Agents overprice houses to get bigger commissions!
Agents are paid a percentage of the selling price of the home. However, even if they were to raise the ask by $25,000, in most cases that would yield an additional $1,500 in commission, which would then be divvied up between the broker the agent is working for and the buyer’s agent, leaving your agent with less than $750 more in his or her pocket. It’s hard to imagine an agent would blow a potential quick sale — and take on weeks or months of additional showings and marketing expenses — for a few hundred dollars
7. Reducing the asking price is a sign of weakenss!
While no-one wants to drop the listing price, if time is passing and there’s been little interest, it could be time to consider the pricing. Remember, time is money. While you’re waiting for someone to meet your price, you’re still paying the mortgage, rates and insurance etc. Plus, sometimes, lowering the price can put your home in front of a group of new buyers, which could generate a lot more interest and, ultimately, get the price back up closer to where it should have been in the first place.