Selling a home can be an exciting time in a person’s life, but it can also be stressful if mistakes are made during the most important stage of the game – pricing. According to Jonathan Smoke, realtor.com’s Chief Economist, the most important facet to selling a home is getting the price right. “For sellers, it’s about understanding the ins and outs of their local market so they can optimize the price of their home and close quickly,” Smoke says. It’s the job of the real estate professional to help sellers understand the importance of pricing the home right.

5 Pricing Tips to Get the Home Sold

1. Research, research, research
   The biggest mistake that sellers can make is trying to base their home’s price on the listing price of similar homes on the market. Active listings haven’t sold yet! The more effective method is looking at the actual sold price of similar properties. Working with a real estate professional helps sellers get access to market reports that will be instrumental in selecting the optimal price for the home.
2. Don’t let emotions get the best of you
   Of course it’s hard for seller clients to stay objective when putting a price tag on something they’re so emotionally connected to, but leaving emotions at the door is key to making sure the price is right. Helping clients focus on research and local stats rather than the sentimental feelings and energy they’ve invested into the home will help them better accept the price that’s going to get the home sold.
3. Pick a “normal” listing price
   We know today’s sellers are creative, but choosing an out-of-the-ordinary listing price can actually hurt the chances of selling the home. $652,347 may include a client’s’ favorite numbers but that price is going to stand out in a list of search results – and not in a good way! Potential buyers will wonder why such a strange price has been chosen and may avoid taking a look at the house at all.
4. Avoid high pricing based on time available
   Someone starting the process of listing their home may not be in a huge rush to sell, but as we all know – pricing high just because there’s “time” is not a formula for success. Homes have a greater chance of selling when they’re new to the market as this is when they generate the most traffic and interest. Price drops and too much time on the market can be detractors to serious buyers and make them wonder if there’s something “wrong” with the home. This is especially important now that many publisher websites highlight the property history and listing activity, including days on market and price changes, directly on the listing.
5. Be open to negotiation
   Make sure there’s a contingency plan in place if a seller client is on the stubborn side and refuses to lower their asking price when initially listing the home. There should be a “Plan B” already in place if the property doesn’t sell at the desired price in a designated amount of time. That plan should be to lower the price to the number the real estate professional feels more comfortable with. Having this discussion before the house goes on the market help set expectations for the client and saves the agent from having a much harder conversation down the road.

The bottom line is that pricing a home right, from the start, will help to sell the home faster and generate the most interest right from the first day on market. At the end of the day, the final pricing may be up to the client but providing them with the tips above at the beginning of the selling process can help them avoid the common mistakes that end with their housing sitting on the market for months.

Once a home is on the market, ListHub’s Market Comparison Seller Report is a powerful tool to help agents demonstrate how the listing is performing compared to similar properties in the market and can be used to assist if those difficult price reduction conversations are needed down the road. In addition, Market Snapshot reports and listing alerts are an easy way to keep clients informed about how the market is performing in their area. Click here to learn how real estate pros can get the competitive edge with the business builder bundle.

Want to share this article with your members? Go for it! We just ask that you cite ListHub as the source and link to this original article in your post.