The Unreasonable Value: Home Pricing Mistakes Declaring the right asking price is the secret to selling a home faster. It is very important to price the property at a competitive market value when finalising the listing agreement. This is because buyers make their decision based on comparing the property to other homes sold in the area. If the home has been listed for quite some time but has not sold yet, it may due to an error in pricing. The inflexibility of the home value can turn off some serious buyers.
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Highest Sale Price According to statistics, homes that are priced correctly when they first hit the market sell easier than homes that start too high. While it is natural to desire a high profit when selling a home, chasing the highest sale price is unrealistic. Exorbitant pricing will eventually force the seller to adjust the price downward, or end up in multiple price drops than they would have if they priced it right the first time.
Too Low Pricing In an effort to sell the property faster, some sellers try to price a property too low. While this can help generate interest in the property, sellers will end up not getting the profit they deserve. An asking price that is too low may also cause the home to appraise for less. It is best to decide on a realistic price that can be compared with the value of other homes sold in the neighbourhood.
Agent with Highest List Price Hiring an agent that sets an unrealistically high asking price can cost the seller time and money. This is because the homeowner may have to slash the prices after the home remains unnoticed for months. It is best to interview at least three agents and choose one who suggests a listing price with comparable sales data. Other than these three pricing errors, it is also common for buyers to get emotionally involved in a selling process. Seller emotion is a difficult thing for agents to deal with because the process should be a business transaction. It is best to stay objective and set a flexible price to start a point of negotiation that could end up in a sale.
Sources: https://www.housetree.co.uk/ http://www.thisismoney.co.uk/money/mortgageshome/article-1671748/House-prices-Whatexpect-news-predictions.html http://www.telegraph.co.uk/finance/property/house-prices/11380469/How-to-get-the-besthouse-price-in-2015.html