Though we work in the advertisement world of our industry and do not directly sell homes, our communication with our home sellers, professionals and buyers gives us a unique perspective when it comes to the appropriate selling price for a home. This article will talk about a few trends we see when it comes to home owners who are listing their own home.
Now, we know nobody knows your home like you do. So it is not surprising that we see a lot of individuals home sellers over-pricing their home on our site.
This totally makes sense, considering you know the all of the upgrades and special features the home has to offer. Plus, if you are like most home owners, you have invested in your home quite a bit over the years and hope to regain some of those costs with the sale.
These are all completely logical and rational reasons to list your home on the higher end of the price range. However, there are some risks that come with pricing too high.
Things you risk with a price that’s too high:
- A “Hard Pass”– Some buyers look on our site and from the search results will scroll right past homes that are simply outside of their budget. So, if you are pricing your home higher than you know it’s worth you risk them scrolling past and not seeing your advertisement.
- Quality Buyer Leads Missed: Similar to number 1. Let’s say a buyer receives your home in one of their search alerts and decides even though it might be priced higher than they are looking, they will see the details. Your buyer might take a look at your advertisement but if the price is not justified with your home listing then you risk them moving on.
- Buyer’s Appraisal; Lower than Selling Price- If a home buyer is getting financing for your home, their lender will need appraisal. If that number comes in substantially lower than the selling price you risk the buyer backing out before closing.
- Selling Other Homes: By pricing your home too high, the other homes in your area that are priced lower get the advantage. Knowing your market is important, since buyers can also research the selling prices for other homes in that area.
Pricing your home to sell is something that takes research and perspective.
Take some time to learn how to correctly price your home for the market. If you are working with an industry professional, or real estate agent, they will be able to tell you what homes nearby are selling for, and where your home fits in. They should be able to guide you with their industry knowledge, which is a benefit to hiring a local professional who knows your area market.
If you are selling your home directly, then you might want to invest in a home appraisal or at the very least a Book Value. Not only can these options give you a number to start with, but a report or an appraisal is also something you can offer your buyer. We currently have an NADA Book Value on our website. You can get just the value for the home for free with your home listing, or if you want the full report (which includes a market analysis report) you can purchase that option too. For home appraisal options, we recommend contacting Datacomp Appraisal. They have a few different appraisal and report options and can give you a quote for their service right over the phone!
The next step is how you advertise the home.
While you know your home, the buyers don’t have any of that experience with the space. They are seeing a price tag on your home and they have to be sold on why it’s worth that number.
If you are advertising on MHVillage, we not only let you list all of the amenities and features of the home, we also have a spot where you can enter a full description. This area of the listing is incredibly important to buyers. Plus it’s your chance to really describe the space and prove that your listing price is accurate. Last but not least, photos photos photos. They say a picture is worth a thousand words, so why not support your selling price with them too!
Hopefully this article can give you a little perspective from the buyers side of things as you continue the process of selling your home. If you have any questions about the services MHVillage offers, please give us a call or send us an email. Our customer service staff is happy to help!