When a home owner is thinking about listing their home, one thing is usually a priority: Money. Listing a home with the correct price can be the difference between getting an offer quickly (maybe even multiple offers) or languishing on the market for months with little to no interest.
Knowing that, Columbus home sellers MUST be able to separate good pricing strategies from the ideas that don’t work. There are several pricing myths that can cause sellers stress, or worse, cost them money.
The following home pricing myths can derail a successful home sale in Columbus, Ohio.
1. “If we keep waiting, a better offer will come along”
When a home seller gets an offer quickly, it is common to be hesitant to accept it. They wonder, “What if other buyers would be willing to pay more?” Remember the saying, “A bird in the hand is worth two in the bush.” There is no guarantee that other potential buyers are waiting just around the corner. If the offer is fair, consider it and be glad to have it.
Waiting for a better offer (that may never come) can even cost you money in the long run. It could cause you to have your home for sale for weeks or even months longer than necessary. Think about the expenses you will be carrying while your home is on the market: mortgage, HOA fees, storage, taxes, utilities, etc. Plus, the longer a home sits on the market, the more likely it is to sell for LESS rather than more.
2. “Getting an offer right away means the agent priced it too low!”
Another common thought sellers have when they receive an offer right away is, “Did our agent price it too low?” This is a natural response, but in Columbus the truth is that receiving an offer early on in the process means your home was priced correctly.
A skilled agent does not price a home based on a number pulled from thin air, but on extensive market research for YOUR home. We use our experience selling homes in Columbus to set the price correctly so that your home is attractive to buyers.
If you get an offer quickly, your home sale is moving in the right direction. An overpriced home in Central Ohio does not sell.
3. “We should price it higher so there’s room to negotiate!”
This is one of the more harmful myths to a home sale in Columbus, because it starts home sellers off on the wrong foot of knowingly pricing a home too high.
Of course, most home owners want to get “top dollar” when selling their home. However, intentionally overpricing your home because you think people will offer you less, could leave you with nothing.
This strategy does not take human behavior into account. When a home is overpriced when it is listed, home buyers assume that the home seller is not serious.
Plus, most buyers begin their search online, and if the price is too high, they might not even click on your home to see if they like it. If they’re not even willing to look at the home, they’re certainly not going to make an offer.
The longer a home sits on the market, the higher the likelihood that buyers will wonder what is wrong with the home. You might get offers after a while, but they will probably be low-ball offers.
That’s why it’s so important to price your home correctly when it is listed. In fact, it can be better to price a home a little under market value to encourage multiple offers and a bidding war, which can push the price up higher than anticipated.
4. “That’s not what my Zestimate says it’s worth!”
Homeowners are often eager to believe Zestimates or other automated valuation tools when that price is higher than expected. But, when the opposite happens, they assume it’s outdated or incorrect information. We’ve written about this extensively. These numbers are usually inaccurate in Columbus.
There is a big difference between an automated home value estimate (which is what a Zestimate is) and a Comprehensive Market Analysis report created specifically for you by an experienced, local real estate agent.
The online estimate is using public records and user submitted data (both of which are frequently incorrect). The agent’s comprehensive report is based on the condition and features of your home and actual closed sales of similar homes in your neighborhood.
5. “We can add all renovation costs to the asking price!”
Home owners love the upgrades and renovations they’ve done on their home, and they want to add in those costs to the asking price when they sell. However, many home improvements do not equal a return on investment in Columbus.
Upkeep and the right improvements can help your home be more attractive to buyers and may help it sell quicker, but it’s not a “dollars spent = dollars more in asking price” kind of equation.
Unless you’re planning on staying in your home for a long time, be mindful of the return on investment any home improvement projects you complete. The swimming pool your family loves could look like a liability to some buyers.
If you’re fixing up your home to sell it, remember to keep it simple and stick with a neutral color palette.
6. “My Realtor® overpriced my house to make a larger commission.”
Nope. That’s not how that works. Columbus OH real estate agents are paid a percentage of the selling price when the home is sold. If the home doesn’t sell, the agent gets nothing. If it ends up selling for less because it was overpriced, the agent gets less than what they would have.
Furthermore, if an agent raises the asking price by, let’s say, $25,000 in order to get a higher commission, that would yield about $1,500 in commission. That might sound like a lot, but keep in mind that the home selling agent does not get all of the commission from the sale of the home.
The commission gets divvied up between the buyer and seller agents, as well as the brokerage. That $25k increase leaves the selling agent about $750 more. That’s not at all worth the cost of a home taking too long to sell. Why would an agent blow a quicker sale for their client and take on weeks or months of showings and marketing expenses for a few hundred dollars?
They wouldn’t and they don’t.
7. “Reducing the price is a sign of weakness!”
Columbus home sellers are never eager to drop the price of their home. However, if time is passing and there has been little to no interest, it’s time to consider lowering the asking price.
When selling a home in Columbus, time is money. As noted above, you’re still paying expenses on the home while it’s listed.
Plus, sometimes lowering the asking price can get your home in front of a new group of buyers. This can generate more interest and potentially even get the price back up to where you wanted to be.
Hire A Pro & Use Strategies That Work
Home owners in Central Ohio often want to sell quickly for more money. To do this, it’s important to have help from an experienced Columbus Realtor.
If you’re thinking about selling your home, contact Rita Boswell at 614-547-3229. Rita Boswell is a Certified Negotiation Expert who knows which home pricing strategies work in Columbus.