Just because it’s a seller’s market in Austin, Texas, doesn’t necessarily mean your home will sell quickly. If it’s not priced right it could sit for longer than expected. Below are four common mistakes made when pricing your home.
I just had clients sell their home in South Austin in a cute little neighborhood called Cherry Creek. It was on the market pretty much for a day before we started seeing multiple offers roll in. We priced the home competitively based on the data pulled from MLS and that home sold within the first weekend, with multiple offers, and all but one were substantially over asking price. A common misconception is the home was priced too low, however, most of those offers were using the new appraisal addendum stating the buyer would make up the difference in cash between the offer price & the appraisal price.
When pricing your home to sell the most important piece of advice is my tip #1: Don’t Overprice Your Home. I had a listing several years ago that was originally going to be a lease house and my client decided to sell. The price that she thought her home was worth was substantially more than what the market data told us, but I thought, “Okay, it’s her house. We’ll go ahead and list it for the price that she wants, she’ll eventually change her mind & drop the list price to the number I suggested.” Easier said than done. That house, although it was gorgeous, sat for five and a half months. We had 50 showings & no offers. She ended up selling that home for almost $100,000 less than her original asking price.
If your home is overpriced, buyers are less likely to make an offer on that house. 90% of the time, buyers are working with Realtors, who run a comp on the neighborhood to tell them what a good offer price would be. If your house is overpriced, you will not be receiving many offers. Your home is going to sit, and homes that sit on the market, unfortunately, tend to have a stigma attached to them.
Tip #2: Use Reliable Data. As much as everybody loves Zillow, your Zestimate is going to be off. It might be too high, might be too low. The best thing you can do is hire a Realtor. I’m not just saying that because I am one. Most of us learn the proper way to pull data on the homes in your neighborhood & where to get that data. We don’t use the Z word in our data.
At least in Austin, Zillow does not have access to our MLS data. They cannot pull the sold stats. What they’re doing is guessing on what has sold based on a homes’ list price & the accessed value, hence their Zestimate. The list price and the sold price can sometimes vary dramatically. For instance, my client bought a home for less than list price. Only those with access to a home’s sold information would know this. Use someone that has access to the most recent sold data in your neighborhood.
While we’re on the subject of data, Tip #3: Use Similar Comparables. When pricing your home it’s best to compare apples to apples. Check out the homes similar to yours in your subdivision that have sold within the last 90 days. If there aren’t any go to the next subdivision similar to yours that is in the same Elementary school district. Select homes with similar age, lot size, & square footage.
Tip #4: Stick to Business. I know that’s tough to swallow especially if you’ve been in your home for 20+ years. I’ve sold six of my own homes and, yeah, at times, it’s hard not to get emotionally involved especially if you’ve put a lot of sweat equity into your home. You’ve had a lot of family memories & good times, but your emotional attachment to a home is not tangible to a buyer, so try to keep in mind that, as much as you love your home, you’re going to pass it on to the next buyer that will hopefully love it as much as you will, but they’re not going to pay a premium because you had 17 birthdays in that house for your triplets. Keep your emotions out of it. It’s going to be stressful enough already, but when you’re coming up with a price for your home, try to stick to the data.
If you have any questions, please contact me directly. If you would like a PDF of this information, I can send it over to you. Just shoot me an email to [email protected]
***Transcription of the YouTube video above provided by REV.