Tuesday, August 23, 2022 / by Amy Brown
With rising interest rates, buyers can afford less home for the money which means that the buyer pool for each home is minimizing. The best way to combat this challenge is to price a home strategically so that it gets noticed, shown, and offers made.
"But my home is worth that price" - Is it? A home is only "worth" what someone is willing to pay for it. And in a market that is still very hot, if your home has not gone under contract within the first week, an adjustment in price is needed.
"But my friend's house in _____ neighborhood sold in 2 days" - Real estate markets are like weather...they are local. The market in N. Asheville is not going to be the same as in Arden.
"My home has an updated _____" - Wonderful! Updated kitchens and baths sell houses! But does your neighbor's home have more square footage, more bedrooms, a finished apartment over the garage, a fenced in yard...all of these factors play into buyer attractiveness. Are you truly comparing apples to apples?
What happens when a home sits on the market?
The biggest seller pitfall and barrier to correct pricing:
Psychologist, Richard Thaler, studied the correlation between how people think about their personal belongings versus items belonging to someone else. This phenomenon is called the endowment effect. Basically what this means is that as humans we think that...
Our stuff is more valuable than it really is
Through a seller's eyes, commonly our house looks like The Biltmore Estate where through a buyer's eyes it looks like a country cottage.
There are 3 ways the endowment effect impacts the sellers’ decisions.
In the end, I always urge my sellers to be open to hearing the truth about their home and the market, no matter how reluctant. Remember, that I am a third party with a fresh set of eyes that can look at your home through an objective lens. Also...it is to my advantage as an agent to sell your home for the most money possible! So try to listen with an open mind so that you can have an exceptional selling experience instead of a challenging one.
Any home, no matter what the condition or location, WILL SELL for the RIGHT PRICE.