If you’ve ever placed bids on items at auction sites like eBay, you’ll notice there’s a point of no return in the bidding process. Once an item is overpriced, bids start to taper off, and the seller has to consider the most appealing bid. Sellers can’t hold on to an auctioned item forever; something’s got to give. The same goes in real estate, whether you’re trying to sell with an agent or in a for sale by owner deal.
Now, think of the house you’re selling as an auctioned item: how do you set the asking price so bidders flock around it like bees on honey? If people in the neighbourhood caution their kids to “stay away from that creepy house on Parklane Street,” that’s proof your home is up on the market for far too long.
Oftentimes, prospects turn stale because you’ve set the price so high, it’s as if you really don’t want the property sold; the following are five tell-tale signs your property is overpriced.
- Your asking price is not trend-competitive
Calculating a competitive figure compared to other properties in your area requires some legwork but it’s vital you get a good grasp of the median value. Price your lemonade so passers-by seriously consider buying a glass, instead of squinting at the next lemonade stand around the bend.
If your property has been sitting for months without an offer, rethink your asking price. Make sure it falls within the price range in your neighbourhood.
- You’ve invested too much to consider a markdown
You’re probably itching to protest at this point. “I want to sell my house fast so I spent a fortune on my property and I’m going to sell it at a bargain? That’s highway robbery!” Sure, you might have gone out of your way to build a Zen garden on your back yard, but not everyone is into that kind of thing. Your property should appeal to the greatest common denominator, in price and construction.
Consider loss as collateral damage, at the very least. There’s always risk of compromise when there’s competition involved.
- It’s a schoolyard pick and your property is always left out
It’s a cause for concern when the property is up on the market for a while. The time your house sits on the market varies between areas and is dependent on market weather. If your property has become a staple of published listings, neglected or overlooked, your house may be considered stale on the market.
Don’t fret–stale bread is still edible; it’s just that everyone eventually prefers to eat from a fresh loaf. Stay on top of listings in the area, and adjust your price to stay competitive.
Don’t hold on to your asking price if everything else is marked down, it might hurt you in the long run.
- Ballpark estimates aren’t what you anticipated
Consider ballpark appraisals if you’re hiring help in the process, but you need as accurate an estimate as possible. Hired help steps your pricing strategy up a notch, but note the trend of advice you’re receiving. It’s possible you’ll be advised ballpark estimates lower than your expectations.
Consider advice with a grain of salt, and listen to counsel of an appraiser. Accept the possibility you’ll compromise more than you have to, but the sooner you sell the property, the better off you’ll be. You can’t go wrong if the real estate appraiser has a credible, reliable reputation in the industry.
- Your property is trimmed off Buyers’ Affordable Options
It’s likely the property has piqued the interest of potential buyers, but it doesn’t translate to visits and showings. Your prices may be reasonable, but potential buyers prefer to prioritize the five more affordable properties on their shortlists. In a sense, your house has become the runt of the litter just because your asking price isn’t competitive enough.
You need to stay on your toes and adjust to the trend. Be aware of current and new competition. Consider adjusting your asking price even if you’re compromised. It’s all about making that sale.
You might have to get down and dirty when you’re selling a property in Australia, especially in a competitive market. Things can get brutal, so it’s best you consider hiring the best help to get the job done for you.
We can help! For a nominal fee, Zero Commission will place your listing on the top real estate portals in the country while providing support along the selling process. Want to learn more about no agent property listings? Click here and save thousands of dollars in commission.
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