August 30, 2019
When the average seller sits down to interview real estate agents, its easy to get caught up in the emotions of choosing a sales price. Of course, everyone wants top dollar for their home. You have put a lot of time, money, and memories into making this house a home. Unfortunately, uninformed sellers often choose the highest list price, which is the absolute worst mistake a seller can make.
Agent A said the home is worth $275,000.
Agent B said the home is worth $250,000.
That's a big gap. There are a lot of things you can do with that extra $25,000. You can go on that overdue vacation, buy a car, put your kid through college, use it for a down payment on your next home, and the list goes on.
That sounds like a great chunk of money. Let's go with Agent A. You list the home with Agent A at $275,000 in the heat of the fall real estate market.
You receive multiple showings in the first three weeks on the market with no offers. It's time to re-address the price. You drop the price $5,000 in hopes that an offer will soon come in.
Another four weeks has gone by. You received a few more showings, but no offers. Reluctantly, you drop the price of your home to $265,000 in hopes of an offer coming in.
Another six weeks has gone by. With no offers, you drop the price to $258,000. The winter market has begun. November is just a few days away. (Home sales generally decline from November - beginning/middle of January. HOMES STILL SELL. I don't want you to get the wrong idea, however, they slow down.)
With great frustration, you call your agent and ask why the home hasn't sold yet. At the end of the conversation, you are unhappy and drop the price one final time to $250,000.
After another six weeks, you receive an offer on your home for $248,000.
133 days on the market, 3 price drops, and a net total of $248,000 you finally get your home sold.
Notice the sales price? What if you would have just gone with Agent B? You would have saved yourself a whole lot of time, stress, and energy. As of August 29, 2019 the average marketing time is 88 days.
Now, I understand that it doesn't always work out that way but all too often that is what we come across in the marketplace and more often than not, the sellers receive $5,000-$15,000 less than what Agent B said (I was feeling generous for my imaginary sellers today :) because the home just sits on the market) When a home sits on the market too long, buyers begin to ask "What's wrong with this house? Why hasn't it sold yet? Let's look at these other three homes that just came on the market instead". Only if I had a dollar for every time I heard those phrases- I'd be rich :)
All this to say, don't hire the agent that says your home is worth the most amount of money. It could be a costly mistake. There are so many other factors that play into selling your home. The biggest question you should have for the agent is "How do you plan on getting my home sold?" They should be able to outline their marketing plan for you. As I have said before, Team Terry has a whole book outlined for you when selling your home. Email me at firstname.lastname@example.org if you would like more information about it!
Written by: Haley Stevahn