Will I Really Get My Asking Price for My Home?
If you are putting your home up for sale, you hope that a buyer will offer you your asking price (or more). But is that realistic or just optimistic? In 2018, the average home sold for 97.5% of its listing price and more than 14% of listings reduced their price before selling, according to data from Zillow. While there are many factors that may cause you to lower your asking price or accept a lower bid, here are the most common reasons why you may not get your original asking price.
Your home was overpriced
The biggest reason homes don’t sell for their asking price is because they are priced too high to begin with. The key is to be realistic. Homeowners often make the mistake of looking at it from the perspective of how much they want to get for their home, rather than what buyers will be willing to pay.
“Some owners are attached to their home and feel that all the work and time they put in should be worth more than what the market is stating,” says Cindy Lou Lapp, Real Estate Specialist with DLP Realty. “Other homeowners are just unaware of the market or what is going on around them. In other cases, homeowners are just trying to pay off the mortgage and walk away. However, the mortgage may be more than what the market value is.”
Another mistake is pricing it high to “see what you can get.” That strategy, however, often leads to homes sitting on the market for an extended period of time, and a series of price decreases, both of which can be red flags to home buyers who may assume that there is something wrong with the property.
To price your home correctly, you should work with a listing agent who has access to comparative data on similar homes that have sold and is thoroughly familiar with the trends of your local real estate market.
Your home isn’t being marketed properly
Online presence is key when selling a home. A home that is marketed properly should be listed in all its surrounding areas and listed on multiple real estate sites. The photos of your home should be top-notch and really emphasize its biggest selling features. If a home has dark photos, isn’t staged properly, and is all-around unappealing, buyers will have a lower perception of its value.
You’re hit with unexpected repairs
Home inspections can reveal unpleasant, and expensive, surprises for homeowners. Electrical problems, faulty grading and drainage, and roof problems are all examples of necessary repairs that may force you to accept a lower offer from a buyer if you don’t pay to have them corrected yourself. Getting an inspection before putting your home on the market can help you eliminate surprises and price your home accurately.
Your Home has been on the market too long
A home that does not have enough interested buyers may sit on the market longer than you anticipated or can afford to wait. As mentioned above, homes that linger on the market can signal buyers that the home is overpriced and will bring in offers below your asking price. While there may be factors beyond your control (like a sluggish real estate market) that prevent your home from selling quickly. Generally speaking, the faster you sell your home, the more likely you are to get your full asking price.