Common Pricing Mistakes & How You Can Avoid Them

Pricing a home for sale in Lynden, WA can be a very touchy subject for some sellers. A home is a very personal thing. You have likely put blood, sweat and tears into your property and feel it is worth a certain amount. However, the most important part in achieving a quick sale is making sure it is priced correctly. Lynden, WA realtors hear all the time how seller's houses are worth more than the guy next door because of varying factors. You could have done a remodel, You maybe bought it at the height of the market, whatever the reasoning is, you want to make sure you don't make the following pricing mistakes when it comes to putting your home on the market.

OVERPRICING YOUR HOME FROM THE START

A lot of sellers will do this to test the Lynden real estate market. The issue with this though is that it typically backfires. Every market is different but if your home for sale in Lynden, WA is priced too high for current conditions, you could be losing very valuable time as an active property on the market. This results in your Lynden real estate for sale losing its "newness" which typically results in you doing a price reduction anyway. The only harm in this is that people start to wonder why the property has been sitting and assume that there is something wrong with it. Definitely be sure to avoid pricing your home for sale in Lynden on the predicted market trends. While home prices have risen 17% since 2007 and are forecasted to continue to rise, you need to stick with current conditions.

PRICING BASED ON PERSONAL NEEDS

This one is incredibly common, and incredibly bad. Just because you put in X amount of dollars on a remodel does not mean you can price your home for sale in Lynden at a number that will allow you to get that money, or more, back. Other common scenarios include pricing based on what you owe the bank or what you want to net after everything is said and done. Of course, Lynden real estate is a fabulous investment. The general idea is to make a little money on real estate, but at the end of the day, you cannot price based on your personal wants and needs. If you do, you can get passed over for real estate in Lynden, WA that is priced correctly. After all, a majority of buyers are using loans. If the appraiser says your home isn't worth as much as you want, the loan will only cover what the appraiser says and you could be out a buyer if they don't want to close the gap with their own funds.

PULLING THE WRONG COMPS

Neighborhood folks sometimes get confused on what "Comps" (also known as Coparables) actually are. Comparable properties are similair homes within the neighborhood that have actually SOLD! For some reason, a lot of people look at current active properties in the neighborhood which is not an accurate gauge on pricing your property. Just like you may have your own pricing motivation, so do your neighbors. They could think it is worth more than it is, they could have put a lot of money into a remodel and are trying to recoup the cost or they simply want to test the market. Regardless of reasoning, don't waste time focusing on your neighbors listing price. When you pick a qualified Lynden Realtor, you should listen to their advice. That includes pricing.

LISTENING TO ZILLOW & THEIR “ZESTIMATES”

Speaking of comps, let's talk about Zillow and their "Zestimates". I cannot tell you how many times I have heard a seller start the pricing conversation with "Well Zillow said my home for sale in Lynden, WA is worth this much". Let's remember that when you drop the Z, the word is still estimate. In fact, the Zillow CEO just sold his house for $700,000 less than the "Zestimate"! Zillow has even admitted to a national error rate of 8%. It isn't just Zillow, it is any website with automated valuation models. These websites were originally engineered for investors that didn't have the means or the time for a detailed comparison. They simply just needed something quick. So it isn't shocking to hear that the folks who created these programs admit they aren't completely accurate. While a great resource when you are first starting out your Lynden real estate journey, you will get a more accurate idea of your home's value from a Lynden realtor. We know the market, we know the comps and we can actually see inside your home. A computer can't. Just remember to stay flexible when using Zillow as your pricing inspiration.

NOT LISTENING TO THE MARKET

If you really want to test the market at a certain number, even if it against your Lynden realtor's advisement, listen to the market after a couple weeks. Are there showings? Is there online traffic? Is the feedback from agents and buyers good? Is all this activity getting you offers? If you can answer yes to these, you likely priced within an appropriate range. If you are answering no, it is time to listen to the market and your Lynden realtor and do a price reduction.

Are you thinking of listing your home for sale in Lynden, WA? Give me a call at 360-410-0848.

Posted on May 27, 2016 at 6:21 pm
Karen Timmer | Category: Uncategorized

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