More Money When You List Your House For Sale in London Ontario
When a seller sits down to interview Realtors, it’s easy to get caught up in the excitement over choosing a sales price. More money means more financial opportunities for the homeowner. Perhaps it means the seller can afford to buy a more expensive home, help pay for their child’s education or take that long overdue vacation. Unfortunately, some home sellers often choose the Realtor who suggests the highest list price, which is one of the worst mistakes a seller can make.
The truth is it doesn’t really matter how much money you think your home is worth. Nor does it matter what your Realtor thinks or ten other Realtors just like her. The person whose opinion matters is the buyer who makes an offer and their Realtor. Pricing homes is part art and part science. It involves comparing similar properties, making adjustments for the differences among them, tracking market movements and taking stock of present inventory, all in an attempt to come up with a range of value, an educated opinion.
This method is the same way an appraiser evaluates a home. And no two appraisals are ever exactly the same; however, they are generally close to each other. In other words, there is no hard and fast price tag to slap on your home. It’s only an educated guess and the market will dictate the price.
Is it Too Low?
Homes sell at a price a buyer is willing to pay and a seller is willing to accept. If a home is priced too low, priced under the competition, the seller should receive multiple offers to drive up the price to market value. So there is little danger in pricing a home too low. The danger lies in pricing it too high and selecting your Realtor solely on opinion of value.
How It Starts To Go Wrong :
Here is a story of a seller who did not interview her Realtor. She plucked the first one off the Internet because, “She looked like such a nice person.” She priced her home at $419,000. This Realtor never heard the experienced Realtors chuckling or shaking their heads at the price. After 90 days, the listing expired.
Continues To Go Wrong The next Realtor, who was referred to her by a co-worker, ( again, no interview) listed the home at $404,900. Months passed and eventually the price dropped to just under $390,000. Still no takers. A few tire kickers, but no serious buyers.
More Than a Year Later By the time the last Realtor was hired to list this home, the seller had grown weary and exhausted, exasperated and of course, discouraged. It was now 12 months later. Together, the seller and her professional listing Realtor priced the home at $385,000. It immediately sold for no conditions. The sad part is the comparable sales in the neighborhood fully justified a price of $400,000, but the home had been on the market for too long at the wrong price, and now the market had softened.
Some Realtors Specialize in Expired Listings There are Realtors whose basic real estate practice is comprised of finding expired listings and relisting them at market value. I know one who sits in a small room with a phone, desk and chair, dialing number after number. Last year she sold more than 17 homes & has 3 active listings right now. She makes a pretty good living repackaging overpriced homes.
The question is how much money have those expired listings cost the sellers? The financial loss often exceeds the extra mortgage payments paid and goes beyond the uncompensated hassle factor of trying to keep a home spotless during showings. It affects the value that a buyer ultimately chooses to pay because it’s not a fresh listing anymore. It’s now stale, dated, a market-worn home that was overpriced for too long.
If you or anyone else you know who may be selling a home, don’t let it happen to you.
Work with a professional Realtor and ask these questions before you hire anyone!