Homeowners can lose thousands of dollars when they sell their house for a number of reasons. How is it possible to lose money when selling, you ask?
In Carolina, we’re probably in one of the best seller’s markets we’ve seen in a decade. We have great comps to get homes sold, but when people are valuing their home, they aren’t doing a full equity evaluation and really understanding what the market can absorb. Many people are simply getting a comparative market analysis (or CMA) and underpricing the home, only to see it sell in a few days for up to 6% less than they should have.
If your home is worth around $300,000 or more, that’s a lot of money to leave on the table.
Secondly, overpricing is a way people are throwing away money. I have people tell me they want to start their home priced $30,000 above what it should be. The downside is that the home’s going to sit on the market for a long time, and even if you find a buyer, the home probably won’t appraise for that price. If a home sits on the market, you’ll have to lower the price. By the time the price comes down to where it should be, buyers will think there is something wrong with the house and they won’t even come view it.
What you end up with is a house that sat on the market for around 200 days that ends up selling for up to 15% less than it should have if it was priced appropriately.
Finally, choosing the wrong agent can cause you to lose tens of thousands of dollars. You want to make sure the agent you hire has a full marketing budget to get your house proper exposure. There are a lot of new agents out there who just don’t know the market. If you’re not selling a lot of homes, they may end up underpricing and losing you money.
Let me know of any questions you have about pricing your home, or if you’re considering buying or selling a home. I look forward to speaking with you!