Palo Alto is a homebuyer’s dream, but that doesn’t mean it can’t be a seller’s nightmare. Even in a desirable area, pricing your home or property can quickly come back to haunt you if you aren’t careful. Your real estate agent and listing specialists can assist you in avoiding these 5 common, yet costly pricing mistakes.
HOW TO NAVIGATE THE PITFALLS OF PRICING YOUR PALO ALTO HOME
Overpricing Your Property
Of course, you want to receive the best possible price for your property. However, that doesn’t always mean your property is worth what you think it is. Overpricing a property automatically turns off prospective buyers who may otherwise have made a fair, or even good offer.
Estimates such as those found on Zillow are helpful guides, but don’t always tell the whole story. In fact, they can often be wildly inaccurate.
Going With The Agent Who Offers The Most
A reputable real estate agent will spend a considerable amount of time working with the seller, listing specialist, and others to determine the proper asking price of a property. There is a considerable amount of time and research involved.
Some less than reputable agents will look at what the house down the block sold for, add an additional $50,000 and to that price and tell a seller that is what their home is worth. This is not only dishonest, it’s a waste of time for all parties involved. The odds of the home selling this way are incredibly low and ultimately will likely sell for around its fair value. Don’t be swayed by agents who promise an unrealistic amount. The end result is usually a poor one.
Expecting To Be Reimbursed For Renovations
In some situations, property upgrades may lead to a higher listing price. However, this is not always the case. First, not all buyers will be interested in the upgrades or feel they add enough value. Second, the relative home values in the neighborhood may not justify your elevated asking price no matter how many pools you’ve put in.
According to a study by Remodeling Magazine, you can expect an average return of 62% on your remodeling job. For this reason, avoid major upgrades right before listing a home on the market, or at least go into them knowing you aren’t likely to recoup that expense.
Pricing Too High In Order To Negotiate
Your home is valued at $2,000,000 so you list it at $2,500,000. The buyer will offer $2,200,000 and you’ll meet in the middle with an extra $50,000. Easy, right? Wrong. Buyers today are savvy and have a wealth of information at their fingertips thanks largely to the internet.
Likewise, their agent will also know the true value of the home. You’ll price yourself out of consideration with this tactic and ward off would-be serious buyers.
Not Using a Professional, Reputable Agent
Pricing a home can sometimes be more of an art than a science. The truth is that both are involved. A top-notch agent will spend a considerable amount of time researching the home, comparing similar properties, and conducting a competitive market analysis.
This approach ensures that the home is priced accordingly and typically results in a good sale within a relatively short amount of time.
Go With the Best Palo Alto Listing Specialist Around
Selling your home doesn’t have to be a chore. Whether you’re looking to sell a three bedroom in Barron Park, a five bedroom in Old Palo Alto; the right agent can make all the difference. Contact me today for all your Palo Alto real estate needs.