There are four known strategies that sellers utilize to price their homes. Never assume that a higher asking price will automatically mean a higher selling price.
Often, this equation works in contrary, especially if you’re not paying attention to what the market is telling you.
Now that you have picked your agent, one of his or her functions would be to help you find out the best strategy to use in pricing your property and make it work.
- Overpriced or sometimes called High Price Tactics – They are not in your best interest. There are some listings that add 10 – 20% over their true market value and these homes end up sitting on the market the longest and are sometimes unsold.
- Somewhat Overpriced – These homes will also sit on the market for a long time untouched, even if they are only 5-10% overpriced.
- Below Market Value Price – Some sellers require a rapid sale. They will attract multiple offers and sell fast, usually in just a few days. Be careful that the agent suggesting this method is making this recommendation with your best interest in mind.
- Priced Correctly – Smart sellers, like you, recognize that real estate is part of the capitalistic system of supply and demand. You have thoroughly priced your home and completed an analysis of other sales on the market.
These competitively priced homes often sell within a reasonable timeframe and sell very close to the asking price. Remember that if this is priced correctly, it should sell for 97% to 99% of asking price.
How to negotiate price when selling a house
One of the most challenging parts of real estate happens during the negotiation process. There are times that the buyer is too persistent and the seller gives up too easily or vice versa.
The great news is the market has gotten better than it has been in years, but it’s still best to be fortified with negotiation skills when trying to sell your home.
Let’s take a look at this video from TIME:
You may be the kind who never questions the offer from buyers and that would be unfair. If that sounds like you, you can use these tips on how to polish your negotiation skills, whether you’re buying or selling real estate.
- Pay attention to your first offers – Never disregard even the low offers. It may even be your best one. The best offers usually come at the time when you first list your home. It would be a mistake not to listen to these offers, regardless of what they are.
- Try your best not to be emotional – Don’t disregard the fact that your home is not just a structure. It may be your family’s entire history but it’s best to stay level headed throughout the negotiation process. Be rational. Use business skills to learn as you can about the buyer. The more information you know about your buyer’s financial statements, the better you will be at negotiating.
- Do not mention deadlines – If you’re behind on the mortgage, in the middle of a divorce or moving across the country, don’t highlight this to your buyer. This gives them unnecessary leverage. By keeping this information under wraps, you can avoid losing control of the situation.
- Silence can be good – Author Olivia Fox Cabane said, “I’ve often heard professional negotiators tell me that they could accurately predict the outcome of negotiations fairly early on using one simple clue: whoever has less endurance for silence loses.”
A certain amount of silence shows respect for your potential buyer. Silence teaches discipline but there are moments that this may mean rudeness so just be careful.
Get in touch with Nancy Braun at 704-997-3794 for a free home valuation.
Up next, let’s be more playful and find out the best staging paint colors nowadays and how to stage a home when you are still living in the house? More on these topics in the next chapter.