This article is part of a 5-part series on the top 5 myths about selling a home for top dollar. When I speak with sellers everyday, these are the top 5 misconceptions they have about selling their home. Let’s examine each one in detail to help clear up the confusion.
(I’ll post the links as soon as future articles are published)
Myth #1: If A House Sells Fast, It Was Priced Too Low
Myth #2: We Are Willing To Wait To Get The Price We Want
Myth #3: The Right Buyer Is Going To Pay The Price I Want
Myth #4: All Real Estate Agents Are The Same
Myth #5: Price It High First And Then We Can Come Down
Myth #3: The Right Buyer Is Going To Pay The Price I Want
You may be thinking “I just have to find the right buyer that loves what I’ve done to my house and see the value in it.” Yes, the best buyer for your property will be the one that sees the most value in it. And yes, this will be the buyer that will pay more than any other buyer. They are, however, not going to pay more than market value for it.
You have to see it from a buyer’s perspective. Let’s say your house is priced $20,000 more than the competition for similar homes. Buyers have already searched for your home online and know that it is more expensive than the rest. Therefore, they come to your home expecting it to be worth $20,000 more. They will begin to nitpick every detail because they want to make sure it is worth the extra money. So things they would normally not worry about suddenly become bigger issues, just because of the price.
Think of it this way – let’s say you are going to buy a used car. There are 2 cars available – same make and model, but one has 1 year old tires whereas the other one has 5 year old tires. The seller for the car with 1 year old tires wants $5,000 more for the car. If you were in that situation, which car would you choose? Most buyers will choose the car with 5 year old tires. Sure, they LOVE the car with 1 year old tires, but they aren’t going to be willing to pay more for it when the car with 5 year old tires works just as well. On top of that, they start to think, “If I’m going to pay $5,000 more for this car, why doesn’t it have leather? Or the steering wheel has marks on it…there is a small stain on the floor mats…” Suddenly, non-issues start becoming bigger issues that they are willing to overlook on a well priced car.
So what is the best strategy for a seller?
The best strategy is to price the home at market value and let buyers bid up the sales price. By having your home priced at market value, it is likely that more than one buyer will be interested in your home. The mere fact that more than one buyer is interested in your home will make your home more valuable. People buy homes on emotion and the fear of losing a home to another buyer is very real and very strong. This is the key to getting a buyer to pay the highest price possible for your home.
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